MSMEs Can Check Payment History Before Offering Credit to Customer
One of the key challenges faced by MSMEs and businesses are collecting dues from customers as the latter is highly dependent on loans/ credits. Increasing cost factor and pandemic has also resulted in rising customer debts for MSMEs.
Recordent, a leading fintech and Equifax, India’s top credit bureau have partnered to help businesses particularly MSMEs to make better credit decisions before offering credit against goods and services by providing a consent-based comprehensive credit report of a potential customer.
One of the key challenges faced by MSMEs and businesses are collecting dues from customers as the latter is highly dependent on loans/ credits. Increasing cost factor and pandemic has also resulted in rising customer debts for MSMEs. This partnership enables MSMEs to reduce risk while providing credits to customers from Recordent that has built a very easy to use tech platform for members to access the Equifax Credit reports through a valid consent framework. The accessed report provides information based on past payment behaviour on loans and credits availed from banks and NBFCs. Recordent platform based on the consent of the customer, re-packages the credit history information in such a way that it is easily understandable by businesses to make informed decisions. In fact, the information provided as a summary on the first page of the report on the Recordent platform can be very helpful for businesses to make quick decisions before offering credit or loan or service to customers.
Advantages of this partnership –
- Businesses can know the credit behaviour of a potential customer before they offer credit against goods and services
- Businesses will now have a capability to reduce their overall risk that could result in financial losses creating fluctuation in business growth
- Encourage customers to maintain a good payment history in order to avail credit for obtaining goods and services from businesses in future
|How businesses can access credit information report(s)|
|Recordent Members||Non – Members|
|*Cost per report starts from 70 INR|
Announcing the partnership, Winny Patro, CEO & Co-Founder, Recordent, said, “We are delighted to partner with Equifax and support businesses with consent-based customer information report that will help in making better decisions before offering credit or service or loan to a customer. Credit default is a huge concern especially for MSMEs as they are at the receiving end, struggling with outstanding dues. We are confident that this partnership will benefit business owners and customers, and also help in maintaining good credit health.”
K M Nanaiah, Country Leader, MD, Equifax India and MEA said, “Equifax is happy to partner with Recordent to provide credit reports for MSME’s based on the consent from respective MSME’s. This will build credit awareness and promote good credit culture leading to better credit access for the MSME borrowers over time.”