The Importance of seeking credit reports on a counter trade party 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 trade 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 trade party and conforming to the international industry standards will provide the necessary comfort.
Perhaps immediately. Certainly not after exposing them to the risk. Therefore, time is of the essence.