Credit vetting is an essential tool for businesses. It provides you with effective and accurate protection to minimise any risk associated with your clients. Many new or expanding businesses make the mistake of extending credit without fully assessing the creditworthiness. It may be easy to extend credit without fully knowing your customer, but this can have devastating consequences to your business.
How do you vet a customer?
Credit vetting is the process of examining and analysing the data about a customer or organisation to determine their creditworthiness and whether or not you should extend your credit to them. Credit vetting should be incorporated into your businesses credit policy. It will help you determine who you will extend credit to, the credit limits and the procedures for granting credit and debt collecting.
Credit vetting involves getting as much data as possible on your potential customers. This is information like credit histories, including poor payment reports, judgments and other relevant information to assist you in assessing your prospective customer.
You can request bank and other trade references as part of your credit vetting process but keep in mind that your potential customer will always give you their best paid creditors as a reference. For proper credit vetting you need to partner with a trusted credit bureau like MarisIT that can provide you with the records of South African businesses. Our partnerships and relationships with other credit bureaus and institutions like the SAFPS mean that our reporting is comprehensive and reliable.
MarisIT has been protecting businesses since 2006. Our credit risk management solution is the most comprehensive tool for credit vetting. We facilitate access to this business information in the form of a Commercial Credit Report. This allows you to establish the creditworthiness of the companies you do business with. It helps you to prevent fraud, determine whether prior legal action has been taken against the company and ensure that the company and principal information that you are provided with is legitimate.
Sound credit vetting means your business reduces its exposure to bad debt and bad payers. It also provides you with the insight required to identify and address risk, appropriate credit limits and trading terms.
Our Commercial Credit Reports
The more information you have on a company, the better informed your business decisions are. Get current, comprehensive information on virtually every credit-active company in South Africa. Our online web-based service will provide an all-in-one credit risk management solution for credit scoring and vetting. You’ll receive contact information as well as public domain records such as judgments and adverse information if any are recorded. We also offer monitoring of both company and consumer clients for any changes to their credit profile for a period of one year. Here are some of the credit vetting reports you can get from MarisIT:
Our XDS Business Enquiry provides the following information:
- XDS CIPC Report contains the Vat & Tax No.
- XDS Standard Online Report contains the Vat, Tax Number, Company judgments and Adverse information.
- XDS Detailed Online Report contains the Vat, Tax Number, Company & Principal Judgment, Adverse info and Deed information.
Compuscan Company Search:
- Provides you with insight into the current status of all companies registered at the Companies and Intellectual Property Commission (CIPC).
- Confirm the correct spelling of the client’s registered name and their registered address and contact details.
- Details on companies, close corporations and their director and member information.
Remember, in a competitive and risk-prone environment, knowledge is power. By properly vetting potential customers, you will minimize your debtor’s liability. The foundation of a good vetting procedure is accurate real-time data to make sound strategic decisions. Find out how our online platform can minimise your risks and help grow your business.