Credit report: what does it contain and how to read it

A credit report is a document that summarises a company's financial reliability on the basis of data from multiple sources. It contains a credit score, a recommended credit limit, key financial figures, company information and signals regarding payment behaviour.

But what exactly does such a report contain? And how do you interpret the information so that you can base sound decisions on it? In this article you will find everything you need to know about requesting, reading and applying a business credit report from the sections it contains to the options for international credit reports.

What is a business credit report?

A business credit report is a structured overview of a company's financial health, payment behaviour and corporate structure. Credit reference agencies compile this report by combining data from a wide range of sources, including the Trade Register of the Dutch Chamber of Commerce (KvK), filed annual accounts, debt collection records and payment experiences reported by suppliers.

The purpose of a credit report is clear: to enable you, as a business owner, to assess the creditworthiness of a business relation objectively. Whether you are considering allowing a new customer to buy on account, paying a supplier in advance or entering into a partnership, a credit report provides the substantiation you need. Would you like to know more about what creditworthiness actually means? Read our article on the meaning of creditworthiness.

Which information does a credit report contain?

A credit report contains five main components: a credit score with credit limit, company details, key financial figures, information about directors and shareholders, and signals about payment behaviour and legal particulars. Below you will read what each component entails.

Credit score

The credit score is a figure that expresses the risk of non-payment on a scale from low to high risk. The higher the score, the more reliable the company is on the basis of the available data. The recommended credit limit indicates the amount up to which you can responsibly allow a company to buy on account. This limit is based on the financial capacity and the payment history of the organisation. Together, the credit score and the credit limit form the starting point of your risk assessment.

Company details

In the report you will find the basic details of the company: the official company name, the KvK number, the legal form, the registered address, the date of incorporation and the industry classification (SBI code). This information helps you to identify the correct legal entity and to understand the company context. This component is essential especially in the case of holding structures or companies with multiple establishments.

Key financial figures

The key financial figures are the figures from the most recent annual accounts that provide insight into the financial health of the company. Think of turnover, operating result, equity, balance sheet total and the solvency ratio. By comparing these figures across several years, you can see whether the company shows a stable or a declining trend. Growing turnover combined with shrinking equity is, for example, a signal that deserves closer analysis.

Directors and shareholders

The information about directors and shareholders reveals who is at the helm and who has a financial interest in the company. The credit report shows names, positions and any involvement in other companies. If a director is connected to companies with payment problems or bankruptcies, that constitutes an additional risk signal. This component is valuable especially in the case of relatively new companies where the financial track record is limited.

Which signals point to increased risk?

Signals that point to increased risk include:

• Debt collection registrations
• Attachments on property
• Bankruptcy petitions
• Suspensions of payment
• Publications in the Central Insolvency Register

A single signal need not be alarming, but the combination of several signals calls for caution. The credit report presents this information clearly, so that you immediately see whether there are any particulars.

How do you request a credit report?

To request a credit report, you log in to a platform such as ours and then search for the company using a Chamber of Commerce (KvK) number or the full company name. At Creditchecken, the report is usually available digitally within seconds.

What information do you need?

To request a credit report, you need at minimum the KvK number or the full company name. The KvK number allows you to identify the correct legal entity straight away. When searching by company name, the system presents possible matches, after which you select the right entity. Particularly with companies that have common names or complex structures, the KvK number prevents confusion.

What does a credit report cost?

The cost of a credit report varies by provider and by subscription type. Creditchecken offers various plans to suit a range of needs. These are based on different zones, depending on the regions in which you wish to check companies.

How do you read and interpret a credit report?

To read a credit report, start with the credit score and credit limit, then analyse the financial trends over several years, and finally assess the indicators and management information. The key is not just to look at individual elements, but to interpret them in context.

Start with the score and the limit

The credit score gives you an indication of the payment risk at a glance. A high score means a low risk of default. The recommended credit limit tells you the maximum amount up to which it is prudent to do business with this company. Are you considering an order that exceeds the recommended limit? If so, this is the time to set additional conditions, such as a shorter payment term or a partial advance payment.

Analyse financial trends

Do not view the key financial figures as isolated snapshots; instead, compare them across several financial years. A company with an acceptable score may still show a downward trend: declining turnover, decreasing equity or deteriorating solvency. These trends signal problems that the current score does not yet fully reflect. Take them into account in your assessment.

Assess the indicators and background information

Check whether there are any debt collection records, seizures or other legal issues listed. Also review the director information: are the current directors involved in other companies experiencing financial difficulties? The combination of financial figures, payment indicators and director information provides a complete picture.

What options are available for international credit reports?

An international credit report is a credit report on a foreign company, compiled using local sources in the country where the company is based. Creditchecken offers the option to request credit reports on companies in a large number of countries. Requesting an international credit report is done via the same platform as for a domestic report, ensuring you have a well-founded risk assessment even for international business relationships.

Why is an international credit report particularly important?

An international credit report is particularly important because, when dealing with foreign companies, you have less access to local sources and the legal system varies from country to country. Requesting annual accounts in France or checking a commercial register in Germany requires knowledge of local procedures and languages. An international credit report removes this complexity by providing the information in a structured format and in your own language.

Which countries are covered?

Through Creditchecken, you can request credit reports on companies in Europe and beyond. Whether it’s a supplier in Belgium, a customer in France or a partner in Asia, the report offers a structure similar to that of a domestic report, including a credit score, financial data and relevant indicators. Do you do a lot of business across borders? Then read more about international credit information and the options offered by Creditchecken.

Request a credit report today

A credit report forms the basis for any responsible business decision involving credit. Whether you’re requesting a new report for a potential customer, reassessing the financial position of an existing debtor or considering international trade: the report provides the objective information you need.

With Creditchecken, you can request a comprehensive credit report on Dutch and international companies in just a few minutes. Combine this with ongoing monitoring for a consistent understanding of your business partners’ creditworthiness. Would you like to find out more, with no obligation? Then get in touch with us for advice.

Check the creditworthiness of your business contacts today

Checking a company’s creditworthiness is not a luxury, but an essential part of running a business professionally. Whether you’re checking the creditworthiness of a new customer, monitoring existing debtors or looking to tighten up your credit policy: reliable information is always the foundation.

At Creditchecken, we help you with up-to-date and comprehensive credit information on Dutch and international companies. Would you like to get started straight away? Would you prefer to find out more about what creditworthiness actually means first? Then read our article on the meaning of creditworthiness.