Kredit Inform is South Africa's largest corporate credit and credit-related business information organisation. As part of their service to ESDA, Kredit Inform is supplying ESDA members with the coalition of credit information as well as organising venues and facilities for Kredit Inform Meetings free of charge. Kredit Inform will assist ESDA members by improving their profitability and speed of service, reducing the number of day sales that are outstanding (DSO).
Kredit Inform update
At an update on the latest trends in credit management held at Panasonic in October, Richard Stothert from Kredit Inform discussed the KreditInform Information Sharing System and the KreditInform Constant Updates. These services provide members with a comprehensive monitoring base designed to highlight changes in a debtor's payment performance and structure. Some of Kredit Inform's services include the Constant Update that monitors all existing debtors for any changes, which may impact on the relationship between the supplier (ESDA member) and the debtor. The debtor is monitored in 27 different areas which reflects the legal and/or credit worthiness of the debtor. If any one of these areas shows a change this triggers an electronic notice to the supplier, affording them the opportunity for immediate remedial action.
Sharing information
The Kredit Inform Information Sharing System (KISS) provides a group of companies in the same industry with the opportunity of monitoring group exposure and risk to common debtors in the industry without the subjectivity of customary business risk meetings. Stothert explained that these risk meetings should continue, as they provide the risk managers the opportunity to share concerns about common buyers, the industry as a whole and provide a forum that may reduce the group exposure to potential bad debt. By companies sharing information on common debtors, suppliers can monitor and even predict payment habits and identify potential problems - all via an autonomous third party thereby guaranteeing absolute confidentiality.
The use of credit information will further equip the credit manager with the tools to adequately assess the quantitative and the qualitative levels of risk that the company is exposed to though the relationship with their debtor. Anthony Rosenbaum, Chairman of ESDA encouraged all ESDA members to attend the Kredit Inform meetings as they are increasing the profitability and effectiveness of each individual business in the long run and subsequently benefiting the security industry as a whole.
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