Why do credit analysis for your company?

Credit analysis is an important process that guarantees the financial security of your business. 

If your company works with financing and sales in installments, having a tool that performs this type of consultation is essential, as this way you can find out whether or not your customer is a good payer. 

In order for a credit analysis to be completed successfully, various pieces of information must be collected, including personal data, income, name restrictions and a positive record. All this, of course, with the consumer's consent. 

Benefits of credit analysis

By analyzing your customers' credit, you not only protect your company's finances, but also help your business grow quickly and safely. 

When credit analysis is part of your business's routine, you can reduce cases of default, monitor your results more efficiently and keep your cash flow more organized and predictable.

In turn, when a company ignores this stage of the sales process, it can suffer greatly. 

Granting credit to customers you don't know increases the risk of default. Many companies go bankrupt because they have to bear the costs of buyers who don't pay their debts.

The opposite can also happen. Out of fear and lack of information, you fail to offer credit options to good payers, affecting your sales flow and, consequently, your business's turnover. 

In the long term, an increase in defaults and a drop in sales will reduce your business's capacity for growth and sustainability. 

Stages of credit analysis

In the case of individuals, the first step is to request their registration details, including their full name, ID, CPF, telephone number and contact e-mail address, as well as proof of residence. 

Depending on the amount of credit offered to the client, it is also important to ask for proof of income, which could be a paycheck, pay stub or a copy of the tax return. Also remember to check that the company the customer works for actually exists. 

If you have more than one source of income, you will also need to ask for information. All this information will be taken into account when determining the amount and limit of credit that can be granted. 

Ideally, the installments to be paid should not compromise more than 30% of the client's income. 

Restriction and profile analysis 

Through credit protection agencies and bureaus, it is possible to check whether a customer has outstanding payments with other companies or financial institutions. All you need is the consumer's CPF number to carry out this check. 

Protection agencies are also able to determine a customer's credit score, as well as their payment history, to find out what their relationship with the market is like. 

Legal entity analysis

In the case of companies, other financial data will have to be evaluated, including the credit proposal, the turnover for the last few months, a summary of the balance sheet situation and even the business plan. A lot of information is also provided by giving the CNPJ of the company under analysis.

Technology in your favor

Credit analysis has several stages and, at first, can seem laborious. Fortunately, there are now a number of tools that can help make the process simpler and more agile. 

4KST works with automation systems and predictive models customized for your business. These include the Customized Credit Score and 4KST Consulta, a 100% online credit consultation platform, ideal for small and medium-sized businesses. 

To find out more about our services, contact us. We simplify the technological process to optimize your results.