A reliable solution for mitigating risk on credit transactions in Mexico.
Spot potentially bad customers in Mexico so you can protect your cash flow and profitability.
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Don't risk damaging your cash flow and profitability.
Without proper due diligence on customers or debtors, you become at risk of not getting paid when you extend credit to companies in Mexico.
- Bad debt will be extremely hard to pursue, as no assets or resources will be available.
- You will be competing with other creditors for your money.
- Financially or legally troubled customers can gain access to your products or service through an undeserved credit line
- You can become an easy victim of fraud.
Get the facts about any potential client and feel confident about doing business in Mexico.
Avoid risky business deals.
What you need is a reliable a Mexican law firm that can guide you through the uncertainty of doing business in Mexico.
For 20+ years, HMH Legal has exclusively assisted international companies to fight bad debt and trace bad debtors in Mexico.
- Company and address verifications
- Investigations of lawsuits throughout Mexico
- Corporate and business information at local public registries
- Investigations of assets and liens at local public registries
- Business and financial report from prospect’s interview
- Appraisals of real estate and movable assets by certified appraisers
- Skip tracing of individuals
- Credit reports in Mexico
- Private investigations
Here’s how we partner with you to assess customers in Mexico
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Assess customer properly to begin business promptly
Credit Management in Mexico
Credit management is a term used to identify accounting functions related to the process of:
- granting trade credit, which involves qualifying the extension of credit to a customer,
- setting the terms on which the credit is granted, based on the company’s credit policy,
- recovering this credit (debt) when it is due through collection procedures and by resolving disputes or queries from customers, and
- ensuring compliance with company credit policy, among other credit related functions.
Credit managers or analysts must perform some credit investigation as part of their credit evaluation and/or due diligence process for evaluating and granting credit to customers. HMH Legal helps with investigations and due diligence services that allows creditors to accurately assess their customers’ capacity, capital, and character. These are some examples:
- Company verification (online and on-site)
- Online databases and lawsuits investigations
- Corporate and business information at local public registries on online databases
- Business and financial reports through customer’s interview
- Search of assets and liens (charges) at local public registries
- Investigation of procurement and government contracts
- Appraisals of real estate and movable assets
- Credit reports in Mexico
- Private investigations
Once a credit manager has qualified a customer and has determined to extend certain credit, HMH legal assists by preparing and implementing proper sales documentation and contracts to secure transactions and make sure that a potential claim for outstanding debt is efficiently and effectively enforced through the Mexican courts.
A final way that HMH Legal assists credit managers is by reinforcing or putting collection procedures in place and, when past due accounts receivables become a problem, by initiating amicable debt collection or litigation to collect such outstanding debts.
The Mexican Credit Bureau (the “Bureau”) does sell credit reports on companies and individuals that have a credit history in Mexico. However, these reports are only available (for sale) to companies that have signed a contract with the Bureau and, thus, become credit information suppliers to the Bureau on a monthly basis. These are usually well-established Mexican companies or subsidiaries of foreign companies with a strong market presence and a steady customer base in Mexico. Foreign creditors with no access to the Bureau can also ask their customers for a credit report provided by the Bureau. All companies and individuals are allowed two free credit reports per year by the Bureau.
As part of his due diligence job to evaluate a prospective client, a client requested our services to investigate the buyer company a bit deeper. He only had the company name, his business address, as well as the name of an individual who claimed to be the owner and manager of the company. Through our initial company verification at SIGER (an online database system that shares corporate information on most companies in Mexico), we found out the names of the current shareholders of the company, none of which was the individual requesting business from our client. Furthermore, this individual was not a manager or representative of the company and had no authority to act on their behalf. Through a further investigation on lawsuits (which runs countrywide), we noticed that the buyer company, which was recently formed (incorporated), had no prior history of lawsuits, which was apparently a good signal. However, upon investigating the shareholders, we noticed that they had a long history of lawsuits as defendants, which seemed to suggest a new entity was being used to start fresh and build up debt. Our client was able to accurately assess risk and make a sound credit decision thanks to a couple of simple investigations conducted on the company and its shareholders.