How much credit should I extend?

eLimit was developed in response to customer requests for more guidance in establishing credit limits or credit lines. With eLimit you are able to maximise sales potential whilst at the same time manage credit risk.

• Accelerate the credit approval process - eLimit accelerates the credit approval, credit review and management reporting processes whilst maintaining acceptable levels of risk.
• Provide consistent decisions - eLimit provides consistent decisions based on the same benchmarks when you are unsure how much credit to extend.
• Reduce the number of accounts on credit hold - Using D&B's eLimit does not necessarily mean that an account should be rejected, but it may help the decision maker place fewer accounts on hold in order to investigate them further prior to establishing the appropriate credit limit. It also helps credit professionals determine an appropriate level of the applicant's credit capacity, particularly for new customers they may not be familiar with.

How is the credit limit generated? - The credit recommendation uses D&B's exclusive statistical modelling and risk assessment tools to establish credit limit guidelines based on industry classification, company and D&B's Dynamic Risk Score, which uses over 25 variables including financial statements, trade payment history, company age and structure, charges, collections, defaults and judgements.

Credit Limit interpretation - eLimit provides two recommended dollar guidelines:
Minimum Credit Limit - A conservative limit, which suggests a dollar benchmark if your policy is to extend less credit to minimise risk.
Maximum Credit Limit - A maximum limit, which suggests a dollar benchmark if your policy extends the maximum amount of credit whilst not deteriorating the risk.

Utilisation of eLimit - The report is suitable when you want to determine an appropriate level of a prospect's trade credit capacity, review account, fulfilling customer requests for increased credit limit and management reporting.

Reports available:

• 1. eLimit Report
• 2. eLimit + refreshed ASIC Extract Report
• 3. eLimit + refreshed ASIC Historical Extract Report