The tough economic conditions facing numerous South African businesses across the board are placing enormous strain on the credit risk functions of such businesses. Failing to make informed credit-related decisions could pose huge risks for many South African companies.
A good example:
Where the business is registered as a credit provider in terms of the NCA (National Credit Act), or where it needs to make decisions regarding taking on new business partners, staff as well as management, the business needs to rely on comprehensive and accurate information gleaned from Credit Bureaux such as My TransUnion.
At the end of the day the major aim of the NCA is to provide standards for consumer credit information and it therefore requires that all Credit Bureaux are registered as such.
Did you know that only a registered Credit Bureau, such as MyTransUnion may engage in the service of providing credit information?
For new business, credit score monitoring is a must in order to protect the business’s ability to borrow at competitive interest rates or to borrow at all, and until your business has been around for quite some time and has established a solid financial history and track record of its own, your personal credit rating will be linked to your business.
A credit score measures the financial health of a debtor – with credit score info, the creditor assesses the risk of lending monies to a business.
Because banks and other credit institutions look at businesses as the personal fiduciary responsibility of the owner, it is imperative to have a clean and well-conducted credit record.
It’s all about healthy credit:
It is almost impossible for new businesses to be approved for business loans, lease agreements, credit lines and other financial transactions without relying on the credit history of the owner.
That is why it is imperative that business owners ensure that their personal credit histories are squeaky clean and if they are not, owners need to take drastic steps to clean up their act.
Checking your personal credit with My TransUnion is a step in the right direction:
It is important to get your credit report from South African Credit Bureaux such as TransUnion.
The next step is to check your credit report for any mistakes:
It is important to check for errors once you have received your credit report – check it thoroughly as there could be mistakes in your payment profile. Should you spot any errors, you need to contact your creditors and ask them to bring up-to-date your information.
Here are some tips to get your credit healthy and up to speed:
- Access your own free credit report from My TransUnion once a year in the month of your birth.
- Always pay your bills right on time – perhaps one of the most powerful methods of increasing your credit scores.
- It can take anything from three weeks to three months for Credit Bureaux to update your information.
- It is a good idea to order a further credit report after three months to check that your account information has been updated and corrected.
- The Office of the Credit Information Ombudsman addresses complaints from consumers and businesses that are negatively impacted by credit information.
Choose MyTransUnion for all your important credit information – the best point of entry if you require facts and figures regarding the credit history of both private individuals as well as that of businesses.
- It is the norm to check the credit records of employees – this is particularly important should they handle cash or sensitive and confidential information.
- Need a loan either for yourself or for your business? The very first step would be for the lender to check that you have a healthy credit score.
- If you have set your sights on sorting out your finances, obtain an accurate credit report to see where you are at.
- Don’t become a victim of identity fraud that seems to be on the up and up – instead be on top of your game at all times by getting a credit report on a regular basis.
- Nice to know is that MyTransUnionis an easily accessible credit bureau where you will be able to obtain current, pertinent credit information so that businesses are better able to manage any future risk while improving customer relationships through information readily available.
As one of the stalwarts in the industry, My TransUnion should be, without hesitation, your “go-to” credit company for relevant, up-to-date credit information.