Secure Credit Analysis: what is your company's responsibility to the market?

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For companies that sell on credit, Credit Analysis is a fundamental process to guarantee the security of negotiations.

But when you look up a customer in the databases, have you ever thought about your company's responsibility to the market ? After all, it is the organizations themselves that feed the credit bureaus with information about buyers, their payments or defaults!

In this process, everyone stands to gain: increasingly up-to-date data allows for more assertive credit granting! Below, we explain how these benefits extend to all companies.





Co-responsibility for financial risks


When we deal with credit analysis and granting , we must vnpay database that this is a process of mutual cooperation between companies . And you may wonder why.

Regardless of which database your company chooses to consult – in Brazil, there are four main ones ( Boa Vista Serviços , Serasa, SPC and Quod) – they are all fed by the companies that use them. In addition, the bureaus rely on information from public sources, protests in notary offices, among others.

And what does that mean? Imagine this scenario: if your client is in default with another company, but this company has not listed the buyer's name in the credit bureaus, how can you know if selling to him is safe or not?

Likewise, how can you assess the most appropriate amount or installments for your customer's payment capacity if they do not have information available in the Positive Registry ?

What we want to emphasize is that you have the possibility of strengthening and improving the same database that you will use to support your credit decisions! And at the same time that you will be reducing the risk of losses for your company, you will also be doing so for the market.

Below, we explain more about the 3 main information sharing channels.





Credit bureau inquiries


Did you know that according to the new Law on Over-indebtedness , enacted in July of this year, no institution that grants loans can do so without assessing the financial situation of the person or company involved? Furthermore, banks and entities are prohibited from hiding the risks of taking out credit or selling on credit!

The legislation not only protects consumers from acquiring new debts that they will not be able to pay, but also provides greater security for companies.

So let's understand: when is it advisable to make a credit inquiry ? It is understood that every transaction that involves financial risk for the company must be supported by a prior analysis of its client. In other words, every operation that, if it results in default, will have a direct impact on the management of your business's finances and cash flow .

If you need to make inquiries to credit bureaus, you will certainly have more peace of mind knowing that the database is up to date, right? The more data available about your customer, the better you will be able to assess whether the transaction is a good deal or not. In addition, you will be able to learn about the behavior of the consumer or company in the market.