Frequently Asked Questions

A credit limit advisory report (CLA) is a comprehensive business credit report. The CLA presents a “snapshot” in time of the company’s risk profile. These reports provide an advised credit limit based on what our analysts conclude as well as customary credit data such as legal info, entity background, payment experience, years in business, and most importantly our credit rationale. This report is often a starting point and part of our client’s credit policy or process for setting credit limits, periodic reviews, identifying risk items, new business, etc. More than just information, it is a recommendation on how to address a customer's request for trade credit.

The Credit Alert (CA) Report is part of our Credit Alert Service. The report is published when our analysts and/or credit committee either upgrades, downgrades, or affirms a company’s credit rating. This report details the risk profile reviewed and the outcome of our rating assessment. Typical reasons you might receive a CA report include but are not limited to, a periodic review, PG secured updated financial information, or we learn of a risk situation that impacted the company’s risk profile.

A Credit Express Report (CER) is a short version of our more in depth CLA with faster turnaround time (typically within 24 hours). This report provides a credit limit recommendation based on a current “snapshot” of your customer’s risk profile and some limited additional credit data. The report is presented in a condensed format, yet decisions still undergo a 360 degree review by one of our analysts.

In today's increasingly volatile and unpredictable climate you need expert guidance and decision support to protect your business. ProfitGuard not only provides you with the information you need to make informed decisions, it also provides recommendations and true decision support. Using the program to capture additional sales, or avoid a loss provides substantial returns over the nominal subscription price.

PG’s strong reputation and industry trust allows us to secure financial data on thousands of privately held companies, one of our biggest strengths. PG also collects and compiles its own trade payment data. ProfitGuard's analysts also utilize a variety of paid 3rd party information resources and publicly available information. Our financial analysts study the industry, visit debtors, and analyze individual company financials and recent events every day. A comprehensive range of trade publications and general information subscriptions are maintained to round out the information sources behind our credit ratings and limit recommendations. We process all of this information and provide you with an objective business credit report.

The PG Credit Risk Score is a predictive score of how you can expect to be paid by the customer in question. The scores range from 1 to 10, with 10 being the best (or least likely to pay late). The credit risk score also correlates with our suggested selling terms, based on the risk level, which can be found on our credit scoring table.

The PG Default Score is a predictive score that indicates the probability of the customer defaulting within the next 12 months. The scores range from 1 to 100, with 100 being the best (or least likely to default, file bankruptcy, etc.). Additional default risk characteristics can be found on our credit scoring table.

ProfitGuard is the only credit reporting company exclusive to the metals industry. Unlike other reporting companies, PG’s sole focus is on the metals segment, this allows us to specialize in this industry’s unique credit characteristics. Secondly, all reports and analysis provided by PG is reviewed by a live analyst and our advised credit limits and ratings are devised from a rigorous rating framework and set by an objective credit committee with 100 years of combined credit experience in this segment. Lastly, PG provides an unparalleled level of customer service and credit support. Whether you are a one man show or a corporate credit department, PG adds tremendous value.

While there's nothing like the peace of mind that comes with knowing your accounts are insured, there are a few reasons below why you still want to be very prudent and proactive in managing your open credit risk. We liken the dynamics to having a car. You buy car insurance to cover an unexpected loss, but you still drive carefully. To do that you need the tools that help you - turn indicators, anti-lock brakes, lights, horn, etc. PG is one of those essential tools to help you safely navigate the roads.

Avoiding Claims: You still have dollars in play with the risk retention in your policy. The price you pay for your policy is dependent on your loss history. The carriers expect to pay claims and underwrite to a certain loss ratio. Using PG, you can stay on top of the risk and avoid losses. This will assure you the best consideration in terms of renewal rates. For this reason alone, over 50% of our clients use PG along with their credit insurance policies.

Account Coverage: Just because the underwriters approve a limit doesn't mean there's no default potential. The opposite is true if they don’t approve or limit coverage, it could be a capacity issue or they don’t have financial data versus the account being a known risk.

Whether you are intentionally overselling insured limits or want to sell into a situation where you have limited or no cover, PG’s information can help you make more informed decisions regarding appropriate sales terms and credit limits.

Account Monitoring: The underwriters do track and monitor your covered accounts, but you can't rely on them for comprehensive monitoring like PG provides. The carrier is structured to take risk, so they may not notify you on all risk developments like PG would. Many of our clients use the Alert service as a way to stay one step ahead. If risk is deteriorating, they use the information to start reducing their exposures before other suppliers are aware of the increasing risk. The same is true when risk improves; they are often first in line for increases or new coverage on a previously uninsurable risk. View PDF.

Our sister company Global Commercial Credit (GCC) is the leading credit insurance broker in the metals segment. Through our affiliation, we can put you in touch with an agent at GCC to custom tailor a program to your needs. Over 50% of PG clients use credit insurance and many enjoy unique benefits by having a combined PG and GCC program in place. Request more info – mail to [email protected]

Yes. We have partnered with two collection agencies and we have arranged for our clients to get their service at a discounted rate. Learn more 

Each ProfitGuard subscription is units based, meaning that depending on what level subscription you purchased, you receive a certain amount of units to use in your contract year to order reports or place a customer on the Credit Alert Service. For example a full access subscription would include 50 units for a set price. Subscribers can use their units how they choose to purchase Credit Limit Advisory Reports, Credit Express Reports, and or Credit Alert Monitoring. A Credit Limit Advisory carries the cost of 1 unit and placing an account on Credit Alert carries the cost of 5 units ( or 6 units under CreditPro subscriptions).

Credit Limit Advisories, Credit Express Reports, and Credit Alert requests can be ordered once logged into the website. Based on your preference, we can deliver your report email or fax.

Yes. Please contact our sales team for details at [email protected]

You can only pay by company check at this time.

To become a ProfitGuard subscriber, simply open an account on this web site and you will be contacted by an account representative to finalize your order. We will initiate your subscription and provide the instructions for logging in and ordering our decision support products. The annual subscription fee renews automatically each year.

 

Any Questions? Call our Business Team at 866-990-1099 or email us.

Ready? Open an Account Today or call ProfitGuard at 866.990.1099

March 2017:

Credit Risk Outlook for Q2... Read more.