The easiest way to find out whether paying for a company credit report Vietnam service is sensible or not is to analyze the potential consequences—positive as well as negative—of your decision.
On the plus side, you will save money that otherwise would have been paid to the credit agency for preparing and providing the report. This is probably the only positive aspect, although you will see ahead that the so-called savings quickly vanish leaving a very deep hole in your pocket.
The Negatives of Skipping Company Credit Assessment
The biggest risk in skipping company credit report Vietnam is that you would be blindly trusting a foreign company located thousands of miles away to fulfill its obligations and commitments. You will have no way to determine whether the company is indeed trustworthy or not.
Next, you won’t be in a position to assess the risk your business is taking by dealing with the foreign company. The company may have a good record clearing its due to its suppliers and lenders. Then again, that may not be the case and you may be dealing with a firm that is likely to result in expensive litigation and very little profits.
Without credit verification, you would have absolutely no means to check these details. All you would have is information available in public domain. Of course, this information can be easily be manipulated, which means you will have no means of verifying whether the info you see on your screen is accurate or not.
Thirdly, you won’t have even the slightest idea of whether the company is involved in any legal dispute or not. The firm may have a good financial track record but may be involved in a complicated dispute with its employees or workers.
Obviously, a labor dispute can easily result in missed deadlines, which won’t be good news if you plan on buying materials from the company. Unless you have a man inside Vietnam’s legal system, you just won’t be able to check whether the company is involved in disputes and whether you ought to consider these points when finalizing the deal.
Finally, ignoring the credit report is just plain bad business. Doing business is all about managing risk and reducing uncertainties. In such a scenario, ignoring a tool that actually helps you quantify and reduce risk and avoid uncertainties just doesn’t make business sense.
When you consider these negatives against the sole positive—a minor cost saving—you too will agree that a credit report verification should be the first step to take before finalizing a contract with a foreign company.