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.

Company Credit Agency A Credit Limit Credit Agency A Credit Score Credit Agency B Credit Limit CreditAgency B Credit Score Credit Agency C Credit Limit Credit Agency C Credit Score
Engineering Company Ltd £60,750 89 £34,500 70 £20,000 80
Builders’ Merchant Ltd £14,700 72 £12,000 69 £5,000 61
Drywall Business Ltd £13,500 96 £24,500 91 £6,200 74
Decorating Company Ltd £3,500 79 £1,350 57 £980 24
Total Credit Limits and average scores £92,450 84 £72,350 72 £32,180 60
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.