Snoop on your suppliers' and partners' finances.
Business relies a lot on trust.
You put your faith in someone or something without ever knowing whether you should.
And this is especially the case for finance.
That’s where newly launched platform Open Risk Exchange (ORX) comes in.
You can get a free credit score for all UK registered businesses on ORX – that’s more than four million companies.
So you can find out how financially stable your business is, and look into your suppliers and customers, too.
Past financial history and performance are factored into ORX’s credit score system, as well as information from publicly available data sources.
“Our platform means businesses looking to obtain finance and check the risk of their trading partners are given more accurate data to make better decisions quicker than ever before,” CEO and co-founder of ORX, Kanishk Walia said.
ORX isn’t just for business customers, either.
Walia said lenders, insurers and banks are also using the platform to determine risk levels, insurance premiums, and the cost of borrowing.
Although it has only just launched, high-street banks and insurers have been testing out ORX’s commercial scorecards for a number of months.
Hindsight is a wonderful thing.
If you’ve been burned in the past by a supplier or business partner with poor finances you didn’t know about, this would have saved you a lot of pain.
It’s exactly this kind of situation that inspired Damian Kimmelman to set up DueDil.
He has previously recounted the story of the co-founder of his previous business whose way of running the business’s finances was dubious at best.
Both Kimmelman and his high-street bank didn’t spot the signs.
Everyone can find out their credit score for free with Clearscore, but there was never anything to help businesses find out exactly who they’re dealing with (until now).
Some of the biggest names in UK tech believe ORX is onto a winner.
Eileen Burbidge has backed ORX (previously known as TypeScore) with seed funding from Passion Capital and is also an ORX board director.
“In a world of instantaneous decisions and big data, obtaining a credit score should be simple, quick and accurate. That is exactly what ORX enables,” Burbidge said.
And ORX has also been through tech incubator Entrepreneur First, backed by LinkedIn founder Reid Hoffman.
After all, what entrepreneur would turn down the opportunity to make business deals more trustworthy?
Anna joined The Memo as an editorial intern and is now a freelance contributor. She’s already been featured in The Sunday Times & The Telegraph. Watch this space. Follow her on Twitter @annaschav.