2022 was a challenging time for the domestic and global economy, as rising interest rates and COVID-related supply chain problems have contributed to decades-high inflation. Now, in the second quarter of 2023, talks of a late-year recession continue to percolate, causing an even greater need for businesses to mitigate as much risk as possible. One easy but impactful way to protect your business is to use JBT’s credit reports for smarter decision-making.
The below story about a fictitious jewelry retailer, John Smith Jewelry, is based on true events, with names and circumstances changed. The hypothetical situation: John Smith Jewelry files for bankruptcy and owes its top creditors $750,000. How could the company’s creditors have used credit reports to prevent this major business headache? Let’s find out.#1: Pull a Credit Report Before Selling
An Ounce of Prevention Is Worth a Pound of Cure…
JBT offers several ways to help you monitor your customers. While no one has a crystal ball that can predict a recession or creditworthiness, JBT can help members make better business decisions.
Start by adding them to our Credit Watch monitoring program. When credit rating changes occur, you’ll receive an email alert. Participate in Interchange and receive a monthly customized report on your customers that include credit rating changes.
Next, consider ordering a credit report on your customers at least annually, if not more frequently. Credit reports include trending payment information for 12 Month Average, 6 Month Average, and 3 Month Average according to agreed-upon terms.
Whether you are a retailer operating storefront(s), an eCommerce store, or a wholesale supplier, leverage credit reporting and trade payment data to build secure partnerships. JBT offers up to 25 free credit reports each year based on membership type. If you are not yet a member, become a member today.
About Jewelers Board of Trade
For over 100 years, The Jewelers Board of Trade (JBT) has obtained and delivered business, credit, and trade data as a not-for-profit, member-owned trade association. Our data, numerous reports, and collection services help members make better business decisions every day of the year.
Today, our members comprise retailers (jewelers, non-specialist retailers) and wholesalers in the United States and Canada that supply the jewelry industry with goods and services. In addition, our members include international brands that service the jewelry industry.