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Internet as a Source of Credit Information

The amount of information on the Internet is truly overwhelming: publications, periodicals, and news services. Internet access make it easy for the credit executive to access many more publications than at any time prior to the creation of the Internet.  Also useful are financial networks such as CNN Financial News and Bloomberg-BusinessWeek. 

The Internet offers a fast, efficient, and effective way to communicate with customers. E-mail seems to work faster and has an inherent friendliness that is a bonus in credit and collections. Somehow, people find it easier to compose e-mail messages rather than to use regular mail. Of course, the credit executive must ensure that e-mail messages adhere to the same standards as regular letters. A relaxation of style does not mean relaxing credit policy or normal business practices.

Using the Internet, creditor companies can access in real time credit bureau reports.  They can also review the most recently published financial statements on publicly traded companies around the world.  In many instances, ratio analysis as well as expert commentary about companies' financial condition and financial performance are available on line, in real time, and at no cost.  A few websites even provide side by side comparisons between the financial statements and financial health a company you are examining compared to the competition. 

Much credit information is confidential in nature. The professional credit executives should take every precaution to maintain standard levels of confidentiality. This may mean using encryption or otherwise securing messages and transmissions. Security also means controlling access to the computer where e-mail messages are stored.

Edited by Michael C. Dennis, author of "1001 Collection Tools and Tips."