Published on 19-03-2012
New Financial Rating Service Allows Teleroute Customers to Check Financial Health of their Business Partners
Brussels, March 21, 2012 - Teleroute, the leading pan-European online freight and vehicle exchange, has the ambition to create the safest and most secure environment for its customers to do business with reliable and verified partners. Therefore, Teleroute has developed a new service in partnership with Creditsafe, Europe's most used online provider of company credit information. Financial Rating offers Teleroute customers one-click-away financial rating reports which allow them to check the financial solvency of a possible business partner.
5% of European Transport Companies Go Bankrupt Yearly
The European transport sector welcomed 11,893 new companies in 2011, who contributed to the 2.33% net growth in volume of the sector.1 In total, 252,937 companies were active in 2011 in comparison to 247,186 companies in 2010. The sector was confronted with a loss of 5% of transport companies due to bankruptcy during the last year. This means that one in twenty companies is potentially at risk, a number that cannot be neglected since doing business with solvent, reliable partners is key to remaining profitable and doing business in a safer environment. Some countries such as The Netherlands, Germany and Poland have a higher growth than the European average.
Financial Rating Service Protects Teleroute Customers against Insolvent Partners
Within the frame of its Safe Market Place Programme, through its Debt Mediation and Complaint Handling Service Teleroute mediates in problems their customers encounter with their business partners concerning deals made on the Freight Exchange. Unpaid invoices are one of the issues that are regularly raised. In 2011, Teleroute managed 1,326 debt cases and 2,641 complaint cases. The company solved 80% of the debt cases thus recovering 1,266 K € for its customers. Furthermore, the majority of the received complaints were resolved within 10 days. Teleroute wants to protect its customers against insolvent business partners. To meet this need of transport companies, Teleroute now adds a new service to its Safe Market Place Programme: Financial Rating. Financial Rating provides credit rating reports that give a detailed overview of the financial health of a company making it easier for planners and financial managers to decide which companies are reliable to work with.
The Financial Rating reports contain necessary data to really understand the performance and status of a company. The service is developed in close cooperation with Creditsafe and is accessible via the Freight Exchange.
The Creditsafe Group is Europe's most used provider of on-line company credit information offering on-line solutions covering over 90% of all European countries. They have the largest company-owned database in Europe with 23 million companies.
Creditsafe financial reports on companies are built using official government, company registry and financial data, official court judgements and jurisprudential data. Creditsafe takes all this information and applies market-leading rating algorithms to it that also take into account the latest macro-economic. The data are updated on a daily basis. The reports include several indicators among which the most important are credit rating, revenue and profit. A credit rating is an expression based on a statistical analysis of a company's information to represent the credit worthiness of that company. According to Creditsafe, they can predict 80% of bankruptcies 12 months before the companies go out of business.
Filip Aerts, CMO of Teleroute: "We understand how important a secure and reliable business environment is for our customers. Therefore since we started our Safe Market Place Programme in 2009 we are always developing new services for our customers to do business in complete confidence using our Freight Exchange. The new Financial Rating service that was developed in close cooperation with Creditsafe allows our customers to see which companies are financially healthy and trustworthy partners. This will make their business activities more efficient and profitable."
David Knowles, Group Marketing Director for Creditsafe: “As Europe’s most used provider of on-line company credit reports we recognise that understanding risk remains a key requirement for all businesses in these harsh economic times. I am delighted that through our partnership with Teleroute we are able to help an even greater number of companies in the key transport sector across Europe to protect themselves against the threat of bad debt.”