Introducing 4 New Credit Bureau Endpoints on Identitypass

Trust is the foundation of every successful business; however, the business landscape has shifted, and trust is becoming more challenging to achieve in today’s digital world. Businesses are constantly perplexed as to who to trust. Although various systems have been set up to promote online trust, there is still a wide gap as it appears that these strategies are not sustainable and always have disastrous consequences on a business’s growth. Businesses prioritize customer due diligence and implement KYC checks to ensure they deal with the right people. The snag is that businesses and customers require mutual trust to help them maintain their online relationships and achieve their individual goals. The company wants to make its customers happy with its products, and customers wish for satisfaction and convenience in their interactions with other businesses. To make this happen, we must first build trust, but more importantly, we must build trust with the right people or businesses.

Accessing creditworthiness applies to individuals and businesses, as most B2B companies allow customers to do business on credit. Most of these businesses give their customers a 30 or 60-day payment period to pay off their invoices. Some customers frequently postpone paying invoices due to a lack of funds or other issues, causing the company’s cash flow to suffer. A consistent cash flow is critical to the daily operations of any successful business. Cash flow issues are frequently the cause of business failure. According to a QuickBooks survey, 60% of small business owners have encountered cash flow issues in the post-pandemic economy. To thrive, businesses must prioritize verifying the creditworthiness of their customers.

Why Conduct Customer Creditworthiness Checks?

Creditworthiness is a crucial business principle that indicates how deserving a customer is of credit. A customer is creditworthy if the company believes the debt will be paid on time. This is determined by various factors, including revenue, payment history, credit score, outstanding liabilities, etc. When determining creditworthiness, three fundamental values must be considered. These are “the three C’s”: capital, capacity, and character.

Furthermore, creditworthiness is the extent to which a business is deemed suitable for financial assistance; it is typically judged based on how dependable a business repays its previous loans or debts. Creditworthiness influences a lender’s willingness to believe that a company or customer will pay its debts on time. Trade credit, or the agreement that customers can buy goods or services and pay later, is a standard process in B2B transactions. It’s a powerful tool for increasing sales and stimulating business growth. However, any time you invoice clients after providing goods or services, you expose your company to the risk of late payment or default. This can disrupt your cash flow, which is the lifeblood of your company. Good creditworthiness can go a long way toward assisting businesses in expanding their operations.

Companies typically conduct credit checks on new customers, primarily through credit reporting agencies. However, credit agencies may not always have all of the necessary information or may have incorrect data. A situation like this does not imply that the client is untrustworthy. It simply means that the company did not provide the agencies with enough information to generate a credit report. Because companies cannot accurately assess customers’ creditworthiness before extending credit to them, this may lead to poor cash flow management. Businesses must have a strict credit check policy to avoid cash problems before onboarding new customers.

Introducing our new Endpoints: Secure, Reliable, and Trusted Credit Worthiness Verification Endpoints

As digital fraud rates rise, so do businesses’ digital-first requirements. It has never been more critical for businesses to have confidence that their customers are who they say they are; this is where Identitypass’s verification solutions come in. Customers expect a seamless, secure online experience, so businesses must create a trustworthy process. Determining the creditworthiness of a customer/business before extending credit is an effective way to reduce your financial risk.

We are pleased to add four new credit bureau endpoints to our verification suites, allowing you to seamlessly access the creditworthiness of your customers and other businesses before any business interaction.

You can now access the following credit bureau endpoints on Identitypass:

• Basic Consumer Credit Bureau Endpoint: This is designed for verifying your users’ creditworthiness. With this endpoint, you can determine whether a customer’s basic details match their account details and whether an account truly belongs to a user.
• Advance Consumer Credit Bureau Endpoint: This is set up so that you can better understand a customer’s account to determine that customer’s creditworthiness. You’d get responses such as the customer’s repayment history score, number of account scores, the email address associated with an account, total outstanding debts, and many other details.
• Basic Commercial Credit Bureau Endpoint: Just like the name implies, this endpoint is designed for you to verify other businesses’ credit details using their RC-company registration number. With this, you can quickly clarify a business’s creditworthiness before engaging in any business transaction.
• Advance Commercial Credit Bureau Endpoint: With this endpoint, you’ll get a more robust insight into a business’s credit details which will help you instantly determine a business’s creditworthiness. The responses include total dishonoured amounts, monthly installments, and total numbers of accounts, among others.

How to use the New Credit Bureau Endpoints

To get started with any or all of the new credit Bureau endpoints, you’ll need to have an active and verified business account on Identitypass. Signup for FREE.

Please integrate the APIs by visiting our documentation page if you already have an account.

We are excited about the many exceptional benefits these new endpoints offer your business. Don’t hesitate to contact us at team@myidentitypass.com with your product requests and other inquiries.