Credit Analysis: How to Fend Off Delinquency in Your Business?

Bad debt is a shadow for Brazilian entrepreneurs. In 2018, Brazil ended the year with 5.305 million micro and small delinquent companies. This number represents a 7.5% increase compared to 2017, and marked the second highest result in the historical series. The highest number was recorded in September 2018, when there were 5.327 million micro and small businesses in the same situation.

Credit analysis is one of them

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It is essential to look for tools to combat default. Credit analysis is one of them, since, along with Good Finance analysis, it enhances decision-making power before (or not) credit release. Want to know more benefits of data analysis for lending? Check out:

  • Know the customer: When you have access to a customer’s financial history, you can profile consumption, payment capacity, and behavior against obligations. Thus, knowing whether an individual or legal entity fulfills assumed financial obligations or not, it is possible to segment its clients according to a higher or lower risk of default.
  • Mitigate Risks: If your business depends on lending, there is a natural burden on each of your money releases to a customer. Thus, to dilute this general risk, it is essential to analyze the register and the risk involved in each operation to avoid defaults and losses.
  • Making decisions securely: Reliable data is the raw material to make your decisions more secure. This data may be collected from various sources and validated based on an information integrity policy. By investing in customer data and record analysis solutions, you will have access to strategic decision making, reinforcing your business continuity.

Good Finance Analysis Tools

When it comes to doing business, it is essential to have access to quality information in a fast way. For this, it is worth betting on platforms that automate credit and registration analysis, simplifying the strategic and operational day to day.

In addition, all this agility can be combined with managing the portfolio of customers and suppliers, as well as choosing good business partners. Monitoring the financial and Good Finance situation makes it possible to identify risks and seize opportunities.

Check out four more benefits of using these tools:

  • Avoid defaults when closing a deal;
  • Consult the financial history of your client;
  • Make decisions more safely;
  • Understand the timing of your supplier.

Serasa Experian offers one of these Good Finance analysis tools, which allows the consultation of CNPJ and CPF and favors the negotiations bringing more security for them.

Why do your client’s credit analysis?

Why do your client

Preventing default is just one of the benefits that analysis of CNPJ and CPF can bring to a business. If we think that every action has a consequence, a delinquent person may end up seeking more credit in the market to honor their arrears. The point is that hiring this credit is not always done consciously, as haste and emotional factors can compromise the objectivity of this choice.

We can therefore conclude that a careful credit analysis also contributes to the end of the ripple effect of default, reducing the chances of a default that may result in the impulsive repayment of a credit to repay a debt generated by the default of some other financial commitment.

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