Credit analysis is a type of customer monitoring, but aimed exclusively at assessing the payment capacity of an individual or company.
In other words, it is a way of measuring the risks of a CPF or CNPJ fulfilling the financial obligations created with a financing institution or any other type of company, based on data such as payment history, level of debt, income and financial stability .
How important is credit analysis?
The main impact of credit analysis is on the financial control of companies or financial institutions. As we mentioned, a customer’s failure to pay can result in problems that are often beyond the business’s control.
This means that when fails to pay its debts, its suppliers suffer from problems caused by third parties. These include a cash flow shortfall and insufficient working capital to pay suppliers, raw materials and other demands that require investment, such as marketing campaigns and hiring labor.
Although it does not eliminate 100% of the risks, a well-done credit analysis can prevent most of these problems and also ensure that companies stay away from judicial recovery processes and even bankruptcies.
How to do an effective credit analysis?
Now that you understand the importance of performing a quality credit analysis on your company, you are ready to apply this tactic to your business. Check out our tips:
1. Collect information about your customers
The first step to a successful credit analysis is to collect detailed information about those you will be doing business with. In addition to basic personal data — such as name, CPF and RG or CNPJ — it is essential to request documents that prove income, address and credit history.
Documents such as proof of income, bank statements and income tax returns are the most basic for assessing any information about the client, including their ability to pay.
However, additional information such as protests, participation in lawsuits, checks, income, billing and profile queries are extremely important to identify bad payers or even criminals.
2. Use credit bureaus for your analysis
To optimize the credit analysis process, you can also use specialized tools and solutions offered by credit bureaus.
These platforms are powered by the datatech database and provide detailed reports on the customer’s credit history, including information on debts, late payments and inquiries made, so that you can ensure greater accuracy and agility in your analysis.
3. Set realistic credit limits
After collecting the information and carrying out a detailed analysis of the financial reports, the next step is to establish real, tangible and personalized limits for each client through effective and well-structured credit policies .
This is an essential step if you really want to minimize risks and ensure that your decisions are safe and sustainable. To define these limits, consider the following aspects:
- Payment capacity: assess the client’s financial capacity to pay debts, such as disposable income, regular expenses and any other financial obligations that may impact their ability to meet their debts;
- Credit history: Examine the consumer’s credit history, including past behavior regarding loans and financing. Those with a positive history are more likely to maintain a good financial relationship;
- Type of product or service: Consider the type of product or service offered and its impact on the user’s cash flow. Higher-value products may warrant higher credit limits, while lower-value products may require more conservative limits.
4. Perform continuous monitoring
Just as the economic market is volatile and society’s needs change, credit analysis is not a static process. Therefore, it is essential to always be vigilant and periodically assess how the risk profile of your customers, suppliers and partners evolves . This way, you will have enough data to make more informed decisions and adjust your strategies.
It may seem simple, but this practice allows you to identify possible changes in payment capacity and take preventive measures to avoid default.
In addition to the four steps presented above, we have some extra tips:
- Adapt and personalize credit analysis to the specificities of your business and your target audience;
- In addition to traditional analysis, evaluate consumer purchasing and payment behavior to identify possible risk indicators;
- Ensure that information about your customers is always up to date to avoid errors in the credit analysis process and fraud risks;
- Treat your customers’ data confidentially and securely, as if it were your company’s data, in compliance with data protection laws.