How the deteriorating credit health affects South Africa’s retail sector

TransUnion’s Consumer Credit Index has declined to 43.6% in the second quarter of 2013 from 43.8% in the first quarter of the year. TransUnion, which is an international leader in credit and information management, says that this drop in the Consumer Credit Index (CCI) reflects a deteriorating consumer credit health. According to TransUnion, “Credit Health” refers to the ability of consumers to service existing credit obligations within the constraints of monthly household budgets.

retail“The fall in the CCI reflects escalating consumer loan impairments and sustained growth in distressed borrowing, both indicators of rising household financial stress,” explained TransUnion in a statement to the press.

What is the Consumer Credit Index?

The CCI is a unique indicator of consumer credit health based on a 100-point scale. Deterioration in credit health is represented by an index below 50.0 and an index above 50.0 indicates improving credit health.

“Consumer credit health has now been deteriorating for four straight quarters and the risk of deterioration in the credit cycle has risen materially,” commented TransUnion Africa President, Geoff Muller.

“Credit-sensitive retail sectors need to become increasingly vigilant to the risks this trend poses to their business,” said Muller.

How pbVerify can help

pbVerify, an innovative web service, is already helping many companies in the credit-sensitive retail sector. Our consumer tracing, credit check, ID verification and business credit check tools make it quick, affordable and easy to do the thorough research that is needed before taking on new clients.

“In a tough global economy, it becomes even more important for retailers to mitigate risks. A deteriorating consumer credit health – while not permanent – shows that companies need to be more vigilant with regards to issuing credit and making sure they’re on top of all consumer repayments,” says Leon van der Merwe, Business Development Manager and Anti-Fraud specialist at pbVerify.

If you want to find out how pbVerify can help your business mitigate risks, contact us today. We’ll give you a demonstration on how our system is helping hundreds of other South African businesses.

 

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How pbVerify aids SME companies in South Africa with Risk assessment and Risk management

risk2As a business owner you know that smart risk assessment is a huge part of what makes you successful. Knowing who to do business with and who to avoid is critical and in order to make an informed decision it’s essential that you have access to the complete information. When you enlist the services of pbVerify you’ll get quick and complete information you need that allows you to decide whether it’s worth the risk or not.

Simply visit pbVerify, register and you’ll be on your way to reports that assist you with managing the risk of doing business. Nowhere else to be found, registration is 100% free, you pay no monthly fees (you pay per search) and no software installation is required, only an Internet connection is  needed.

pbVerify is an ideal choice for:

  • Credit grantors. If you’re a business that grants credit accounts to other businesses or consumers, get a full report on a potential client’s credit history before making the decision to grant them additional credit. You always want to know who you’re doing business with.
  • Home loan companies. Want to ensure you aren’t granting a home loan to someone with a sordid financial past who will just disappear, leaving the burden of the debt on you? pbVerify will allow you to view a potential grantee’s financial information and make an informed decision.
  • Micro-lenders. Even companies that solely grant small loans need to be certain that their borrowers are responsible, reliable and plan to pay back the loan. Before you sign that paperwork, run a potential borrower’s name through pbVerify and get an idea of who it is you’re dealing with.

Our goal is to give SME businesses tools to protect themselves and to make informed business decisions involving risk assessment. Unfortunately, many business owners fall prey to scam artists, fraudsters and flat out dishonest individuals and businesses.

pbVerify arms you with the information you need to protect your business.

Back to risk assessment with pbVerify data bureau for Business or speak to a consultant telepathically on 011 516 9400 today.

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MYpbVerify personal credit check website launches!

Your trusted name in credit bureau data systems, pbVerify is proud to launch the new online personal credit check website, MYpbVerify™ for private consumer credit reports. If you live in South Africa and want a secure, discreet and fast way to get your credit report, this is it!

MYpbVerify Girl

pbVerify and MypbVerify – Personal and Business Credit check

As the local leader in customer communication technologies, Pitney Bowes is excited to be able to launch this newly developed tool to the market.

Here’s what you need to know:

Your credit information is gathered by credit bureaus on a regular basis from various sources that have extended you credit. Retailers, banks, lenders, employers, landlords, and other credit providers have access to your credit records to assist them with credit risk management in deciding whether to grant you further credit, a loan, a credit card, new employment, housing, or to offer you new products and services.

As a consumer it is critical for you to know your credit status and always have a complete picture of your credit history and credit score.

The MYpbVerify™ premium credit report considers all possible influences that may exist on your credit rating and combines it into one, easy to read credit check report that gives you a full picture of your credit history and credit status in the market.

Basic, Standard and Premium Reports:

MYpbVerify™ not only gives you instant online access to your personal CREDIT REPORT, it allows you to customise your credit report with variable information and pricing options to choose from.

Depending on your status and credit history, you have the option to choose from a Basic credit report to more advanced options in the Standard and Premium reports that will include Directorship information, Deeds (properties owned) data, your personal Compuscore rating and more…

The most versatile personal credit check on the Net!

Contact our support line on 011 516 9400 or visit MYpbVerify today!