By Kennedy Kangethe
Nairobi — The first commercial sector bureau in Sub-Saharan Africa has been launched in Kenya.
Dubbed Veri – Credit, the bureau will focus on solving cash flow problems by providing access to non-performing credit information to its members.
The exclusive analytics platform, available on both web and mobile apps, provides valid and verifiable payment experiences enabling proactive credit risk information not available from any other source.
The Veri-Credit system follows a closed user group model that allows only its members to anonymously exchange DBT (Days Beyond Terms) credit payment performance information on the compliance of credit terms by their customers.
Such a credit information network enables Veri-Credit members to quickly distinguish slow-paying customers or defaulters from those that pay within credit terms whilst using Veri-Credit as a means to leverage repayment from defaulters.
Stephen Mills, Director, Veri-Credit says the creation of Veri-Credit aims to drive a significant change in the payment culture to bring about considerable benefits to all trade sectors with proven credit risk management practices, contributing to a substantially increased cash flow and subsequent profitability for members whilst enhancing the safety and soundness of our Kenyan economy.
According to Najma Dadar, Managing Director, Veri-Credit, there has been growing public awareness of the need for commercial companies to have greater access to credit data.
“Our aim is to encourage and promote best credit practices between businesses and their suppliers and to significantly improved cash flow. Veri-Credit will help meet the needs of both,” Dadar said.
Many businesses have accumulated credit balances owing to delayed payments from their corporate customers thus compounding their cash flow and profitability often resulting in employee layoffs to sustain sufficient cash flow to maintain minimum operations.
The domino effect of this is a substantial reduction in tax revenue derived from corporate and personal tax contributions.