Credit process

A credit process is the process a company goes through to establish and maintain credit.

The credit process can basically be anything from a few actions to several extensive checks, follow-ups and the like. It basically depends on the company.

Many often think of the credit process as the initial steps before credit is granted, but you should also think of the credit process as all the work involved in maintaining, updating and updating credits for each individual customer.

Why have a credit process?

If a company provides credit or loans, the company should also have a credit process that is carried out when the credit is granted and continuously during the lifetime of the credit.

The credit process helps ensure the right framework for your credit granting and ensures that the customer should have credit, how much credit the customer should have and for how long.

The credit process aims, among other things, to:

1. Qualify the customer for the credit
2. Qualify the amount of credit (credit limit/credit maximum)
3. Qualify the length of the credit(credit time)

What does a credit process include?

A credit process basically qualifies whether the customer should have credit, how much credit the customer should have, and how long the customer should have credit.

The process is up to the company and in our experience, most credit processes are non-existent or very limited in scope.

However, if the credit process is flawed or non-existent, it can have major consequences, as in the worst case it can lead to large losses on debtors.

That's why we always recommend that you check at least the following:

• How long has the company been in business?
• Who are the owners of the company?
• What do the company's latest public accounts say?
• What type of company does the customer have?
• Does the company have a previous payment history with you?
• What industry is the customer in?

All this information should help determine how long and how much credit the company should have.

If there are too many alarming elements in the credit process, it is also possible to decline credit and demand cash payment.

Get help with your credit process

With Qatchr, you can get help with your credit process - either automatically or manually.

Vi hjælper dig med alt fra KYC, kredittjek og meget mere. Vi kan hjælpe dig med både privatpersoner og virksomheder.

Qatchr is an online tool that you can use without installation and on all devices. Qatchr gives you insight into your customers' financial situation, which is a great complement to your credit rating and credit process.

We can help you with credit times, credit sizes and credit recommendations.