The Kenya National Chamber of Commerce (KNCCI) on Friday signed a deal with Veri-Credit, the Trade Sector bureau credit reporting agency, to provide its members with better credit risk management solutions.
Veri Credit is a firm whose members exchange Days Beyond Terms (DBT) payment performance information anonymously with total compliance of the terms of credit by its customers.
The signed Memorandum of Understanding (MOU) will guarantee the members of the chamber of commerce faced with cash flow bottlenecks with all the necessary information on the non-performing credits.
Analytics will be available through smartphones and online as well. The Platform will offer exclusive analysis while at the same time providing effective and verifiable experiences that foster proactive credit risk information lacking in other sources.
The utilization of such a credit information network from firms like the Veri-Credit is highly fundamental if one wants to differentiate between credit defaulters, the slow-paying customers, and those that adhere to the credit payment timeline. It is, therefore, easy to leverage repayment from defaulters.
This comes at a time when several businesses have suffered losses and amassed credit balance as a result of delayed payments from corporate clients and customers. They have, eventually, compounded the cash flow and profit margins, which has, in some occasions seen the laying off of some employees for the business to run smoothly and to sustain sufficient cash flow.
The signed MOU will see a significant reduction in tax revenue contributed by corporate and personal taxes.