Company: GlobalTech Exports (a hypothetical medium-sized manufacturer and exporter of industrial components based in Mumbai, India)

Challenge: GlobalTech Exports was experiencing increasing pressure to expand its international reach to maintain growth. This led to exploring new customer relationships, including both domestic and overseas entities. However, the company lacked a robust system to thoroughly vet potential customers, exposing it to the risk of dealing with financially unstable or disreputable partners. This resulted in delayed payments, bad debts, and reputational concerns.

Solution: GlobalTech Exports decided to subscribe to Mira Informs comprehensive business information report services. They aimed to leverage Mira Informs data and analysis to make informed decisions about onboarding new customers and managing existing relationships.
Implementation:

• Integration with Onboarding Process: GlobalTech integrated Mira Informs reports into their new customer onboarding process. For every potential domestic and overseas customer, the sales and finance teams were mandated to request and analyze a Mira Inform business information report before finalizing any agreements or extending credit.
• Key Information Analyzed: GlobalTech focused on several key data points within Mira Informs reports:
• Financial Stability: Credit scores, payment history, debt-to-equity ratios, profitability trends, and any history of bankruptcies or insolvencies.
• Reputational Checks: Information on past litigations, regulatory violations, negative media coverage, and association with known fraudulent activities.
• Business Operations: Length of operation, industry standing, key management profiles, and any significant changes in business structure or ownership.
• Overseas Specifics: Country risk assessments, political stability indicators, and compliance with international trade regulations.
• Risk Categorization and Thresholds: GlobalTech established internal risk categories based on Mira Informs findings. They defined clear thresholds for accepting or rejecting potential customers. For instance:
• Customers with a "High Risk" rating (based on very low credit scores, frequent payment defaults, or significant negative reputational flags) were immediately rejected.
• Customers with a "Medium Risk" rating required stricter payment terms (e.g., upfront payments, shorter credit periods, letters of credit) and closer monitoring.
• Customers with a "Low Risk" rating were offered standard credit terms.
• Continuous Monitoring: GlobalTech also utilized Mira Informs ongoing monitoring services for their existing customer base, particularly those in higher-risk categories or volatile overseas markets. This allowed them to proactively identify any deterioration in a customers financial health or reputation.

Impact and Results:

Mira Informs business information reports proved instrumental in helping GlobalTech Exports avoid several potentially damaging customer relationships:

• Avoidance of a Domestic Customer with a History of Insolvency: Mira Informs report revealed that a seemingly large domestic distributor had a history of multiple prior insolvencies and ongoing legal disputes with suppliers. Despite the potential order volume, GlobalTech, based on this information, decided not to proceed, saving them from likely bad debts and potential legal complications.
• Rejection of a Dubious Overseas Buyer: An overseas company in a new market expressed interest in a substantial order. However, Mira Informs report highlighted a very poor financial rating, a history of delayed payments to international suppliers, and allegations of unethical business practices in their local market. GlobalTech declined the order, avoiding significant financial risk and potential reputational damage associated with dealing with such a company.
• Early Identification of Deteriorating Financial Health of an Existing Overseas Customer: Mira Informs continuous monitoring flagged a significant decline in the creditworthiness of an existing overseas customer due to adverse economic conditions in their country. GlobalTech proactively adjusted payment terms, secured partial upfront payments for subsequent orders, and closely monitored shipments, mitigating potential losses.
• Improved Negotiation Leverage: With the detailed financial information provided by Mira Inform, GlobalTech was able to negotiate more favorable payment terms with customers identified as having moderate financial risk, ensuring better cash flow management.

Enhanced Due Diligence and Compliance: For overseas customers, Mira  Informs reports aided in conducting thorough due diligence, ensuring compliance with international trade regulations and reducing the risk of engaging with entities involved in illicit activities.

Conclusion:

• The implementation of Mira Informs business information report services significantly strengthened GlobalTech Exports risk management framework. By proactively vetting potential customers and continuously monitoring existing relationships, the company successfully avoided engaging with financially unstable and disreputable entities, both domestically and internationally. This resulted in:
• Reduced bad debts and improved cash flow.
• Minimized the risk of legal and reputational damage.
• Enhanced confidence in expanding into new markets.
• More informed decision-making regarding customer relationships and credit policies.

    
Mira Informs comprehensive and reliable business intelligence became a crucial tool for GlobalTech Exports, enabling them to pursue growth opportunities with greater security and confidence in the quality of their customer base. This case highlights the tangible benefits of leveraging robust business information services for proactive risk mitigation in both domestic and international trade.