Mexico represents the second-largest import and export market for US businesses in the world. More than $677 billion worth of goods and services are traded every year. Tens of thousands of companies in the US do business with companies in Mexico every day.
Whether you are importing, exporting, sourcing, extending credit, or considering partnering with an international company, you need to evaluate your risk. Giving credit to an international company that may not be able to pay its bills or depending on an international supplier that may not have the financial resources to deliver the products you have ordered puts your business at risk.
When there is no global standard for credit scores, you can still get business credit reports for most businesses in most countries, including businesses in Mexico. Command Credit offers business credits reports for Mexico through our partners, Credit Reports World.
Credit Reports World has more than 50 years of experience in Latin America and uses in-country resources and local credit managers to produce business credit scores and evaluate financial risk. If there is no current information on file for a particular company, custom investigations are launched to provide an expert opinion on creditworthiness.
Business Credit Reports in Mexico
The Mexican Credit Bureau does sell credit reports, but only to companies that have a contract with the Bureau, such as Credit Reports World and Command Credit.
Not all companies will be in their database. Unlike the US which has deep databases from multiple credit agencies, a business credit report in Mexico or Latin America may require manual research pull together credit information from multiple sources. Because of the investigative nature of some credit reports, they may take a little longer to fulfill and be a little more expensive than what it costs for US business credit reports.
With a business credit report from Mexico, you can expect to receive information about a company’s:
- Financial performance
- Public filing records
- Payment behavior
- Profitability
- Financial stability
The information you get can help you assess risk to make better business decisions.
How Long Does It Take to Get Business Credit Reports in Mexico?
Credit reports on companies in Mexico are available in 10-12 working days, although Command Credit offers express reporting in 5-6 days and can also accommodate urgent requests for most countries, including Mexico, without 36 hours.
International business credit reports from Mexico are delivered by email.
The Benefits of International Business Credit Reports
Without the proper due diligence on your business partners in a foreign country, you are putting your business and cash flow at risk. If you extend credit to a customer and they fail to pay you back, you could be in a difficult position. You will have limited (if any) protection from US courts and government resources. Also:
- Bad debt can be difficult to pursue in other countries.
- You may not have access to assets or resources.
- You may be competing with other creditors to recover what is owed
- You can become a victim of fraud
Companies facing financial trouble are more likely to pay local, in-country, or longtime customers first rather than new customers, especially if they are in another country.
Business Credit Reports Mexico – Customers
While many US companies do business in Mexico without any problem, a business credit report on potential customers in Mexico can help you feel confident that you are making a solid decision based on facts.
The information you get from an international business credit report can help you decide:
- Whether to grant trade credit
- How much credit to extend
- Terms and conditions for repayment
- The level of risk you are comfortable with taking
When a business in Mexico has a good credit score, it can give you peace of mind. If credit is less than stellar, it allows you to determine the acceptable level of risk for your comfort.
Business Credit Reports Mexico – Suppliers
With the significant disruption to the supply chain, we have seen in the past year, you may be looking for new suppliers or diversifying your supply chain. Before you get into a relationship with a new supplier, it is also a good idea to run a business credit report on Mexico suppliers just as you would on partners in your own country.
When you place an order, you want to be confident the supplier has the financial resources they need to deliver what you have ordered. If the Mexican business has high levels of debt, poor cash flow, or delinquencies on their record, it may not be able to get the raw materials they need to produce the goods they have promised.
If a supplier grants you credit, you may not have to pay them if they do not fulfill your order, but it can cost you customers when you are unable to stock your shelves or sell products. That costs opportunity and money.
If you are looking for business credit reports in Mexico, contact the international business credit reporting experts at Command Credit to request a consultation.