Business Credit Checks in South Africa – benefits for your business
i-Check Data Solutions has put this article about Business Credit Checks in South Africa are very important, yet not fully appreciated by business owners in South Africa. There are many benefits of running a credit check on a potential cooperating partner, including protecting the company from the bad debt, helping to sketch client’s profile or simply providing the best possible offer. At the end it all leads to increasing the sales and improving the cash flow.
Many small businesses in South Africa suffer from bad debt. I-Check Data Solutions can run a credit check on a business from as little as R59.99 and protect the company from bad debt which most definitely would exceed that amount of money spent!
One of the things, which most of the business owners don’t know about, is the fact, that the vetted entity does not have to know about the credit check being run on their name. So without looking suspicious, you can silently run a report to see if the company is in a good standing with other suppliers and organizations.
So, what information can be seen on a credit report?
A basic summary of the fields shown is as follows:
- Company information: name, registration number, type, registration date, tax number, industry class, status, shares and capital as well as year end
- Directors’ information: names, ID numbers, addresses, credit scores, fraud alerts, judgements, adverses, active companies etc.
- Auditors’ information: addresses, names, statuses, types
- Linked companies with information similar to the company itself
- Previous addresses, enquiries, director addresses
- Adverses and judgements
It is a very comprehensive report that gives away pages of information. Most of the people are interested mainly in judgements and adverses, as these two fields would show if the company has been paying their suppliers on time.
And what are the benefits for the business who runs the check? The following shall explain it all, from the business owner point of view:
- Reduce risk – the better information you have on your clients, the better decision you can take in order to secure the cash flow.
- Get more consumer information – so you can predict the future credit behavior and protect your business.
- Make better decisions – your debtors are your income, your cash flow and your profit.
- Offer customized services – more you know about your client, better offer you can provide.
- Improve the relationships with the clients – if they have a good track record, offer your best services. It will pay off!
- Simply know more – which companies are involved in the business you are vetting, are the directors blacklisted for bad debt? or have any suspicious listings that you are not happy with?
Is it really worth it?
Is it an actual question? Can you afford NOT TO RUN business credit checks on someone you are planning to give thousands of Rands worth of goods? Or provide a service where a down payment is not required? I don’t think so!
I-Check Data Solutions offers the most comprehensive Business Credit Checks Reports in South Africa and the best prices on the market. From as little as R59.99 you can vet your potential business partners and check the existing ones. Contact us for more information.