Connect with us

Hi, what are you looking for?

Datanamix News

Credit vetting – an essential key to SME success

Credit vetting

For SMEs, sound risk management via credit vetting is not only advisable, it is absolutely essential.

Wasting precious time and resources chasing down debtors for money is not only undesirable for any business, it can be downright destructive. The good news is, there is a way to avoid this – and it is inexpensive and painless. Two words: credit check.

If you are in business, you will know that cash flow is king. This is especially true in the in the small to medium enterprise (SME) environment, where finances are particularly tight. Clients that default on payments can – and inevitably do – seriously jeapordise the success of your company.

A foolproof way to protect your business – and ultimately boost its financial fitness – is through consistent credit vetting.

Credit vetting is simply the process of affirming the credit worthiness of customers in terms of financials. Checking the credit status of your clients greatly minimises uncertainty around whether your invoices will be paid, as it provides an overview of their credit rating and reveals whether there are any judgements against them, or whether they have defaulted on payments in the past.

Simple step towards success

According to Leon van der Merwe, senior business development manager at customer communications firm PBSA, the percentage of small simply overlooking this critical process is staggering.

“Simply taking the steps to check the credit status of companies and directors before doing business with them is straightforward, very affordable and it could make all the difference.”

A detailed credit application document with the correct capture information, credit vetting consent and related terms of agreement will protect the financial wellbeing of your organisation, he adds.

All of this can be easily accessed via pbVerify, a PBSA product that offers a user-friendly online credit vetting service. Specifically for small to medium sized businesses, pbVerify is connected to all major credit bureaux and credit data providers and is credible and accurate.

“Neglecting this crucial step towards managing a successful business can cost you profoundly. Having an overview of the credit worthiness of potential customers, on the other hand, will help you make better decisions, in turn saving you time, trouble and money,” concludes Van der Merwe.

For a comprehensive view of all pbVerify’s vetting solutions, please visit www.www.datanamix.com

You May Also Like

Datanamix News

Empower your business with powerful customer management solutions, from staying on top of FICA (Financial Intelligence Centre Act) requirements to building ongoing trust with...

Datanamix News

Two primary data protection and financial regulation regulations are the Protection of Personal Information Act (POPIA) and the Financial Intelligence Centre Act (FICA). They...

Datanamix News

It is vital to prioritise due diligence when considering that any delay in the process may result in overlooking important signals and red flags...

Datanamix News

Directive 8 aims to ensure that companies check the skills and honesty of both potential and current employees. It also requires screening employee details...

Datanamix News

The end of the year is fast approaching, and businesses need to end on a high note and prepare for the upcoming challenges and...

News Watch

Artificial intelligence is about to transform Valerie Ingold’s industry – debt collection – and she says it is about time. “When you started a...

Datanamix News

Are you considering business partnerships in South Africa? Verifying a company’s registration status is vital for ensuring credibility and safeguarding your interests. At Datanamix,...

News Watch

Law-enforcement agencies have expressed hope for more coordinated international efforts to combat corruption after global software giant SAP agreed to pay R2.2 billion in...

News Watch

The blocking of IDs by the Department of Home Affairs without notice, timeous investigation and appeal processes, has been declared unconstitutional. High Court Judge...

Datanamix News

The concept of identity has become a crucial asset in today’s digital world, extending beyond just an individual’s name or identity number. It is...

Copyright © 2023 - Datanamix
Disclaimer: The information in this BLOG is provided for general informational purposes only and is the opinion of the author only. No information contained in this blog should be construed as legal advice from pbVerify or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this blog should act or refrain from acting on the basis of any information included in, or accessible through, this blog without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue.