2 trillion dollars - the credit held by businesses rather than banks. How do we manage the risk associated with the credit that businesses hold that is hidden from us.
Cortera looks at the data component and the social interactions that make up credit risk.
Credit is tough and risky. Net 60 days payment terms are a risk for your business. With cortera, i don't go to Dunn and Bradstreet. I go to Cortera and pay 3 bucks and get some data about their credit worthiness. Then I go in and see how people are discussing the social side: the discussions about what's happening in the business, are they paying on time, is there a new management team. I can ask my circle: what's happening in this business and can I trust them before I extend them credit?
The challenge will be the trust aspect of the people in your 'circle'. This is definitely a challenge.
A post from the Improving It blog
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