Avoiding Bad Credit

Avoiding Bad Credit

Pick your customer carefully. Just as in the domestic American market, bad debts are avoided more easily than rectified.
If there are payment problems, keep communicating and working with the firm until you have settled the matter. Even the most valued customers have financial problems from time to time. If nothing else works, request tbat the Department of Commerce or tbe International Chamber of Commerce begin arbitration on your behalf.
Information that is current and accurate is the food for good financing decisions. Basically, two types of international credit information exists: (1) the ability and willingness of importing firms to make payment, and (2) the ability and willingness of foreign countries to allow payment in a convertible currency.
Following are several ways to obtain credit information about companies and their countries:
Information about United States Firms.
• Commercial Banks
• Commercial credit services, such as Dun and Bradstreet
• Trade Associations
Information about Foreign Firms.
• National Association of Credit Management (NACM)
• Foreign credit specialists in the credit departments of exporting companies
• Commercial banks, which check buyer credit through their foreign branches and correspondents
• Commercial credit reporting services, such as Dun and Brad-street
• Consultations with the EXIMBANK and the Foreign Credit Insurance Association (FCIA)
• The United States Commerce Department's World Trade Directory Reports
Information about Foreign Countries.
• World Bank
• Chase World Information Corporation
• The Magazine Institutional Investor
• National Association of Credit Management (NACM)

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