3–5 minutes

How to assess a company’s financial health with Navigora

A company may look like a strong prospect on the surface. Its website is polished, the team is growing and the first sales conversation went well.

But before you extend credit, sign a contract or invest more time in the opportunity, it is worth checking what is happening behind the scenes.

Navigora brings financial information, risk indicators and official company records into one clear company view. This helps you assess whether a business appears financially stable, where potential risks may exist and whether further investigation is needed.

Here is how to evaluate a company step by step.

1. Find the right company

Start by searching for the company by name or business ID.

For broader prospecting, you can also build a company search using criteria such as:

Industry and location
Revenue and company size
Financial performance
Credit score
Growth and profitability
Company age

This is useful when you do not yet have a specific company in mind. For example, you can search for financially stable businesses in a selected industry and region instead of working through a long, unfiltered list.

2. Check the overall company score

The company score gives you a quick summary of the business’s financial position and estimated insolvency risk.

Navigora Score assesses companies using consistent criteria based on financial figures, business history and industry benchmarks. The simple 0–5 score scale helps you identify companies that appear financially stronger and those that may require a closer review.

Treat the score as a starting point rather than the final decision. A high score can support your initial assessment, while a weaker score tells you where to look more carefully.

3. Review the recommended credit limit

Next, examine the company’s recommended maximum credit amount.

This estimate is based on factors such as the company’s score, payment behaviour, age and revenue. It can help you evaluate how much financial exposure may be reasonable when offering payment terms or beginning a new commercial relationship.

The recommendation should still be considered alongside your own credit policy, contract value and risk tolerance.

4. Look for payment and compliance risks

A good financial assessment should include more than revenue and profit.

Navigora helps you review available records related to:

Payment defaults
Tax debt
Company register status
Legal proceedings
Payment behaviour

These details can reveal risks that are not immediately visible in ordinary financial statements.

One record does not always mean that a company should be rejected. The amount, timing and overall context matter. However, repeated or recent issues may justify stricter payment terms, a smaller contract or an additional discussion with the customer.

5. Examine the financial statements

Move beyond the headline figures and review the company’s financial development over several years.

Pay particular attention to:

Revenue development
Operating profit and profitability
Solvency
Liquidity
Efficiency
Employee count

A single strong year can be encouraging, but the trend is often more informative. Is revenue growing consistently? Is profitability improving with it? Does the company have enough liquidity to meet its short-term obligations?

Navigora presents the key figures in one place, making it easier to compare different periods without collecting information from several sources.

6. Check important company events

Financial statements describe what has already happened. Recent company events can help explain what may happen next.

Look for changes such as:

New decision-makers
Restructuring
Ownership changes
Rapid growth or contraction
Public procurement activity
Other significant business developments

These events may affect both risk and commercial potential. A leadership change could open a sales opportunity, while restructuring may require a more cautious approach.

With Navigora Signals, you can continue monitoring selected companies and receive alerts when relevant information changes.

7. Make the decision in context

The purpose of a company assessment is not simply to label a business as “good” or “bad”.

The real question is whether the company is suitable for the decision you are making.

A high-value contract with long payment terms requires a different level of scrutiny than a small trial purchase. A weaker financial indicator may lead to advance payment rather than ending the opportunity completely.

Navigora gives sales, finance and business teams a shared view of the company. This makes it easier to balance commercial potential with financial risk and choose the next action based on evidence rather than assumptions.