We all know it is quite important to have credit reports compiled on potential clients, and even existing clients, as this minimises your future credit risk exposure.
Having credit reports done on a regular basis, will keep bad debt surprises down to a minimum, and so your cash flow will be much safer as well.
Here are a few more reasons why credit reports are so important:
- Tough economic times – you should know the financial status of all your existing and potential clients, to see whether you can afford to extend credit to these companies.
- The annual cost of credit reports, is much smaller than to have to write off debt of R 50 00.00 or so.
- Protect your company’s interests, by knowing:
- whether the Principal has property
- was Surety signed, worth anything?
- does the Principal have associated businesses?
- what opinion does the trade references have of the applicant?
- was there a recent change of ownership of the applicant?
- any recent legal action against the applicant?
- can you afford to raise an existing client’s credit limit, if the client requests it?
- On the other hand, you can determine who your best paying clients are, and determine whether you want to offer them a higher credit limit, therefore increasing your profit potential.
Our clients rely on our credit reports because:
- the info is fresh, as in on the day of the report
- the info is verified, we confirm all information provided by the applicant
- we obtain a bank code, directly from the applicant’s bankers
- we contact the trade references provided, and so gauge the applicant’s payment history
- each report comes with our recommendation, on whether you can extend credit to the applicant
- this recommendation is based on the many years experience of our senior personnel
So, contact Kredcor now and let’s get the ball rolling.