How data can help you track your client's lifecycle

The rapidly changing economic and geopolitical landscape is compelling companies to not only review their credit risk management and sales processes but also to take a closer look at the business situation of their partners and clients. There is a wealth of open data available in the market that companies can leverage to increase sales volume and mitigate credit risk.

Data search

Business growth is essential for every company. Open data can help identify companies that meet both simple and complex criteria. For example, instead of just searching for active companies older than one year operating in a specific sector, include criteria that verify their reliability: information on debts, credit ratings, credit limits, financial indicators, and more.

Analysis: Is your future business partner or client reliable?

Before initiating new business relationships, it is essential to do your homework by gathering all available data on your new partner or client. When assessing a company's reliability, it is important to check not only financial indicators but also business connections and whether the company appears on public sanctions lists (EU, OFAC, UN, etc.).

Weak financial indicators might prompt you to decline a partnership. However, checking business connections can reveal new opportunities or threats. Your potential business partner might belong to a large corporate group with significant potential, or they might have a troubled history, such as the threat of bankruptcy, which would bring you only headaches and risks rather than business opportunities.

Analysis of potential clients

Companies typically evaluate their clients based solely on internal data (primarily payment history), but external data can provide broader insights. You will learn whether a partner is involved in litigation or has outstanding debts to government institutions and private companies. Furthermore, changes in turnover and employee numbers can indicate business growth or, conversely, a decline.

Concluding a partnership

There are generally two scenarios when concluding a partnership with a client:

- both parties are satisfied: one received the service or product, and the other received payment,

- one party ends up on a list of debtors. Debt collection is not an easy process, and open data can be very useful in deciding whether you should go to court or attempt to negotiate a debt repayment. Data on finances, business obligations, debts, and litigation can help you assess the status of your debtor partner and make an informed decision.

Our partner Okredo open data platform helps manage the entire client lifecycle: finding new clients, assessing reliability and sales potential, fostering growth, and collecting debts thanks to the debtor data published on the platform.