Credit Status report

It is essential for companies who sell goods and services to know if the buyer will be able to meet its financial commitment, that is its obligation to pay.  The credit status of a person or company is an evaluation of the capacity of a person or company to face financial commitments.

For a person, it is based on the assets (for instance but not limited to his/her home plus other real estate) minus the liability (for instance a mortgage) and the recurrent revenues.  In Belgium (and the EU), privacy laws limit access to part of such data.

For a company, it is based on the analysis of the annual accounts.  Naturally, it is paramount to assess the credibility of the annual accounts first.  In Belgium, annual accounts need to be published with the National Bank’s Central Balance Sheet Office.

There are various professional suppliers of credit status reports.  It is an essential part of successful trade to systematize credit status analysis of clients.

Updated 19/12/2016

Definitions provided under this section refer to the Belgian situation; unless specified otherwise. The texts are meant to summarize concepts in daily language and should not be considered as comprehensive or definite. We welcome suggestions for modifications or additions at glossary@tcm.be.