q) What is trade tape data?
a) It is credit industry term for account receivable data.
q) What is trade tape data used for?
a) All the major business credit bureaus use it to calculate risk of a company.
q) What is the advantage of submitting trade tape data to bureaus?
a) Two advantage, Other companies before extending credit will review credit worthiness calculated by credit bureaus using yours and other trade tape data files. Second advantage is you will get better rate on the reports you pull from the credit bureaus.
q) Can I submit same trade tape to multiple bureaus?
a) Yes you can.
q) Is there a standard format or layout for trade tape data?
a) No, all bureaus accept in any format.
Every small, medium and large company should submit trade tape data to at least one bureau or to your credit groups. By sharing the knowledge among your peers or bureaus you would have shared your customers exposure. This exposure data is out in public and your customers will pay you regularly to avoid delinquency. It is advisable to tell your customers upfront about your trade tape sharing policies.
All bureaus using trade tape data come up with all kinds of charts with following information:
- Current and past payment score
- Historical payment trends [6, 12, 24 months]
- Current and past company Exposure
- Using current and past data come up with predictive future score.
D&B
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