By International Credit Reports
Start with the proposed payment terms and exposure
Before reviewing a new customer, describe the transaction you are considering: expected order size, invoice currency, payment terms, order frequency, and whether several invoices could remain unpaid at once. This gives the reviewer a concrete question to assess rather than a vague request to ‘check the customer’.
Confirm the buyer’s legal name, jurisdiction, registration identifier, and billing details. Keep a separate record of any parent, delivery recipient, distributor, or third-party payer. The customer account should identify the business your company intends to invoice, with any contractual uncertainty resolved through the appropriate review.
Collect evidence in a consistent order
A repeatable checklist makes incomplete applications easier to spot. Add the evidence source, date, and reviewer’s conclusion to each item; do not record only that a document was received.
| Step | Information to capture |
|---|---|
| Identify | Legal name, local-language name, jurisdiction, identifier, and matching record |
| Define | Requested terms, expected order pattern, currency, and potential unpaid balance |
| Research | Available company report, relevant figures, periods, and source limitations |
| Corroborate | Useful references and explanations of discrepancies or missing information |
| Decide | Authorized decision, conditions, review triggers, and unresolved questions |
Example: monthly orders can overlap
Assume, purely for illustration, that a customer orders USD 10,000 each month and asks for 60-day payment terms. Two monthly invoices could remain unpaid at the same time, and delivery or payment timing could increase the overlap. Reviewing only the first USD 10,000 order would not describe the ongoing account accurately.
Build a dated schedule of expected invoices and receipts for your actual trading pattern. Use that schedule to describe the exposure being considered. It is not a recommended credit limit: the decision also depends on the evidence, contract, business policy, and any other arrangements that apply.
Read the evidence against the right entity and period
Check whether financial figures relate to the customer itself or a wider group. Label currencies and units, identify the financial year, and distinguish missing values from zero. For references, record the relationship and dates rather than reducing every response to ‘good payer’.
Finish with a short approval note that another team member can understand. State who was assessed, the terms considered, the evidence used, the conditions attached to the decision, and the next review trigger. A report can inform this process without guaranteeing that the customer will pay.
The ITA’s due diligence resources distinguish investigation of a potential company or partner from broader market research. This checklist applies that distinction to a customer account review. International Trade Administration: partner due diligence.
Research your prospective customer
Prepare the customer identity and the questions behind the proposed payment terms, then compare available company report options.