The Importance of seeking credit reports on a counter parry can hardly be overemphasized to a prudent banker. Credit checks are a global norm and one of the major tools for any effective risk management system
Bankers need a credit report to manage their risks judiciously and assure themselves of their due rewards. Facilitating international trade is a profitable business for the banks. Whenever a banker is approached for opening of an LC or negotiating of an export bill, the need for a credit check on the counter party becomes his/her basic requirement. Bankers do not ask for Credit Reports, just to carry out a formality. They ask for these reports to take prudent business decisions and therefore need a comprehensive, credible and current credit information / report
A credit report coming from a reliable and experienced source containing updated information on the counter-party and conforming to the international industry standards will provide the necessary comfort
Perhaps immediately. Certainly not after exposing himself to the risk. Therefore, time is of the essence.