Typical case in point:
ABC Company, your customer of 2 years, currently has a credit limit of $50,000 and you are considering increasing his credit limit to $100,000. Your goal is to re-assess the customer for risk using a set of data points and decide whether the increase is justified.
The process for reviewing existing customers’ credit request for credit limit increases is similar to the Bectran new customer process with some minor differences.
The Credit Request: In the case of credit limit reviews the credit request is created internally by the credit staff. To create a request for credit limit review, click on the Credit Limit Review link and follow the steps to identify the customer and fill out the credit request form.
Credit Reference Options: Once the credit request is created for credit limit reviews, you have the following options to obtain credit references:
- Ask the customer to provide references.
- Directly request the customer’s banks/vendors to provide you with references.
- Re-run existing references on file.
- Ask the Trade Associations to provide you with references /credit information on the customer.
Steps (1 to 3) are performed on the Credit Reference tab, while step 4 is automated if you have the Industry Trade Reference feature activated.
Credit Data / Documents: The following options are available for document/data gathering:
- Capture customers’ financial statements.
- Capture credit bureau data.
- Complete your customized credit review evaluation questionnaire.
- Ask customer to provide personal guarantee.
- Request the customer to upload needed credit documents or upload the documents yourself.
- Request the customer to electronically sign any of your credit documents.
To perform the above tasks: select request from Task Console - - > Document/Data status.
Credit Evaluation: Credit evaluation for credit limit reviews is based on custom scoring models designed to be adapted to your specific credit management needs. To review and update the custom scoring models for credit limit review, go to:
Account settings - - > Custom Scoring Model - - > Scoring model – Credit Review