SURVIVING THE CREDIT SQUEEZE
Equifax urges businesses to protect themselves
London 17th September 2007 – The knock on effect of the crisis of confidence in the wholesale finance markets means banks could be more cautious when it comes to lending to businesses. Recent reports show that 40% of European companies say they have been directly affected by the credit market unrest. Equifax, the online credit information provider, urges businesses to protect themselves from the credit squeeze.
“In the current economic climate, businesses need to be more vigilant than ever,” warns Neil Munroe, External Affairs Director for Equifax. “Consumers are already tightening their belts after the interest rises and the ripple effect has started throughout the business community. Added to this, the banks’ possible increased reluctance to lend money means businesses may no longer have a safety net if they get into trouble.
“With this in mind we advise organisations to share data and implement systems to monitor their customers for signs of financial stress which could result in late payments or even insolvency. At such a difficult time, businesses can’t afford to take on any bad debt and data sharing and monitoring systems are essential to provide companies with much needed protection.”
Data sharing communities allow businesses to widen the net of critical information available to them. By sharing as-it-happens information about their customers, such as stopped or bounced cheques, winding up orders, CCJs and accounts on stop, businesses can react quickly to any signs that their customers are in financial trouble and as a result stave off the threat of bad debt.
Automated monitoring systems such as Equifax Portfolio Monitoring provide very real benefits for businesses, helping them quickly identify potential bad debt and act quickly to prevent it. Businesses can monitor information about themselves, as well as keeping an eye on the accounts of key clients and partners so they can anticipate any difficulties.
Munroe concludes, “With many businesses more likely to get the cold shoulder from banks, it’s imperative that they protect themselves from the threat of bad debt. Through data sharing communities, coupled with ongoing monitoring, organisations can keep an eye on the status of their own business and key accounts, ensuring they are protected at all times.”
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For further press information please contact: Claire Foster, Kate Clements or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: claire@harrisonsadler.com
About Equifax
Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, we leverage one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customised insights that enrich both the performance of businesses and the lives of consumers.
Customers have trusted Equifax for over 100 years to deliver innovative solutions with the highest integrity and reliability. Businesses – large and small – rely on us for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, and much more. We empower individual consumers to manage their personal credit information, protect their identity and maximise their financial well-being.
Headquartered in Atlanta, Georgia, Equifax Inc. employs approximately 5,000 people in 14 countries throughout North America, Latin America and Europe. Equifax is a member of Standard & Poor’s (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX.
Equifax. Information That Empowers.
