How to open a credit account in areas with high default rates?

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Want to know how to open a credit account in areas with high default rates? Read the full article this week on Meu Crediário and learn more about it.

Opening a credit account in regions with high default rates can be a challenge for companies and financial institutions. Default, which represents the non-payment of debts, is a problem that directly impacts the financial health of companies and confidence in the credit system.

However, it is possible to adopt strategies and measures to avoid risk and ensure the sustainability of the credit plan.

To understand more about the topic, check out the full article where we will show you how possible it is to open a business and maintain your financial health.

Happy reading!

OPENING A CREDIT ACCOUNT IN A COUNTRY WITH A HIGH DEFAULT RATE: IS IT POSSIBLE?
Recently, I was participating in a course by Ermelino Espíndola (PAGL) in Salvador (a course that I highly recommend to all store owners).

During coffee, I had the opportunity to talk to some larger retailers and they commented that they avoid opening stores that offer the credit payment method in the Salvador region because they have a history of high default rates, and some chain stores have even almost gone bankrupt in the past due to the risk of the location.

The first point is that I tried to understand these store owners' objections a little better, I also presented a model that, based on my experience, would make sense to “test the square again”.

So, if you want to know how to open a credit account in higher risk locations, know that it is possible, but it is important to be aware of the risk profile of customers, in addition to maintaining a consistent credit limit process.


Remember: one of the most important approaches to dealing with default in high-rate markets is to carry out a careful credit analysis.

In this process, it is essential to check the customer's financial overseas chinese in usa data history, considering their payment capacity, income and credit history.

Furthermore, it is recommended to establish adequate credit limits for each customer, taking into account their payment capacity and the portion of their income that can be used to pay the installments.

In this way, it is possible to significantly reduce the risk of default and ensure that credit is accessible to customers , while preserving the financial health of the company or financial institution.

Watch the video below and see exclusive tips on How to open a Credit Account in areas with high default rates, on the Meu Crediário YouTube channel :
YouTube video
6 TIPS ON HOW TO OPEN CREDIT IN AREAS WITH THE MOST DEFAULTS:
1. MAINTAIN A CONSERVATIVE CREDIT ANALYSIS:
Firstly, as the market presents a higher risk, it is important to be more conservative in the first few months, working only with clients at the top of the pyramid (A and B).

Therefore, in the first few months you will notice that you will lose a significant amount of sales, but this is important so that you can test the market and also be aware of the size of the market you can have if you do a good job during this testing period.