The true cost of credit data?

By the very nature of our experience and the network of trusted partners developed over many years, we’re asked on a daily basis to help source the best available data or information from the UK and around the globe. Sadly, many purveyors of data worry only about their own sales targets not about yours.

Let’s look at some numbers for a client of Corporate CPR with 200 active customers.

CompanyCredit Agency A Credit LimitCredit Agency A Credit ScoreCredit Agency B Credit LimitCreditAgency B Credit ScoreCredit Agency C Credit LimitCredit Agency C Credit Score
Engineering Company Ltd£60,75089£34,50070£20,00080
Builders’ Merchant Ltd£14,70072£12,00069£5,00061
Drywall Business Ltd£13,50096£24,50091£6,20074
Decorating Company Ltd£3,50079£1,35057£98024
Total Credit Limits and average scores£92,45084£72,35072£32,18060
Cost of 200 UK reports£5,000£3,000£1,000
Net cost of data£87,450£69,350£31,180
Notional Cost over 200 customers£4,622,500£3,617,500£1,609,000

The credit values are deliberately low – no-one should be extending large credit exposures using credit agency recommendations. It’s your money at stake not theirs – don’t ever forget that.

Of course, we’ve revealed the names of neither the businesses, nor the agencies, in the table above. Suffice to say, the data is real.

What does the table reveal?

Spend £5,000 on reports with the first agency – ouch, that’s five times the amount of agency C, so a huge cost difference of £4,000.

But the assessments of the first agency would support sales to the 200 customers that exceed the recommendations of agency C by a staggering £3,000,000. Boy, would the new business sales team have to work hard to cover that potential gap when they might be better focused on upselling to the existing base with credit headroom available.

If you have 2,000 customers – “do the math” – as they say.