Along with its numerous opportunities foreign trade also bears some risks, which can be recognised early on and avoided if you have the right credit management partner.

“Other countries, other customs!” This expression especially applies to payment behaviour and legal systems, which even in "geographically close regions" are sometimes considerably different to the familiar native law.

Insufficient protection of creditors and defaulting clients are still two of the largest risks in international economic life. The fact that a non-payment has occurred and whether a claim may be asserted depends to a large extent on the preceding form of contract. At the beginning of a business relationship you will not have any experience of the new client’s reliability and payment behaviour. This is why it is imperative that each new foreign client be subject to a creditworthiness examination in order to assess whether he can fulfil your requirements of an effective business relationship, which also includes his financial solvency.

Via a Creditreform credit report the potential client will firstly be clearly identified by its address, legal form, VAT number and authorised representatives. Here it is clarified whether the registered office and the actual business premises are the same, which can be of crucial significance in a legal action, or to which extent the legal form provides for liability. The question which persons may sign contacts to make them legally valid ist of significanse too. Furthermore, detailed information about business activities, the development of company stability and solvency is provided. "Black sheep" and financially unstable companies may be recognised in the initial phase of the costly acquisition of foreign clients and can be avoided who at a later stage may cause bad debt losses .