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What should I report when providing a Credit rating?

Note: (The information on this page is based on the opinions of Rich Hill - Webmaster of Creditworthy Co.)

Credit personnel cannot be too careful when providing a credit rating on a customer to an interested party such as a vendor, bank or credit reporting agency. This information is valuable, but the recipient must be made aware that the information provided is confidential and must not be used beyond the Credit Department.

When providing a credit rating on the phone you should ask several questions and also confirm that the information provided will be kept confidential:

• Ask the caller for their name, company name and telephone number. This information is then kept as a permanent record.
• As the caller if  they provide credit ratings on their customers? (There are many companies and banks that expect to receive a rating, but do not reciprocate! If they do not rate, then you may not want to provide a rating to them.)
• Then advise them that the information provided is confidential. They must agree to keep the rating confidential.

Once that procedure is complete,  you can provide a rating.  Here is some information I have felt comfortable providing.

1. Date account was opened.
2. Recent high credit (Within last 12 months).
3. Present balance.
4. Present amount current and past due.
5. The present Days Beyond Terms (DBT) and how they normally pay - also stated in DBT.
6. Date of last sale.

Do not provide recommendations or opinions.  I also do not provide the customer's "Line of Credit".  I consider that to be an internal opinion.