In a public lecture held in the Asharqia Chamber held on Monday
Reviewing the importance of "credit reports" on the performance of entrepreneurs and financial institutions
Specialist Abdullah Al-Musehar, The Head of the Corporate System at SIMAH, stressed the importance of credit reports for entrepreneurs, and for financing facilities that support their importance in enhancing the performance of small and medium enterprises in particular and avoiding many risks. He stressed that the credit report comes in several forms depending on the type of credit and the level of the institution, and it involves It has many advantages that are reflected in entrepreneurs and donor institutions alike.
He said during a lecture held at Asharqia Chamber yesterday, Monday 1 August / 2022 under the title (the importance of the credit report and its role in enhancing access to finance), that credit information is of great importance to enterprises (small and medium ones in particular), as it contributes to creating sustainable development and the advancement of productive activities. It reduces the uncertainty of dealing with small and medium enterprises, provides financing institutions with an accurate account of credit behavior, thus contributes to the distribution and diversification of economic activities, and thus stimulates the financing of small and medium enterprises.
Al-Musehar added that credit involves several risks, including the possibility of a loss for the lender through the borrower's failure to pay and fulfill obligations, which confirms the need to assess these risks, which are usually done through several factors, most notably the borrower's credit history. The total debt burden is borne by this borrower and the debt-to-income ratio of the borrower. The guarantees are provided for financing or the loan.
Hence, the importance of the credit report, which is characterized by several advantages, mentioned by the lecturer, and said that they are reflected on the entrepreneur, as it contributes to regulating the pioneer’s financial obligations and financial planning, and gives him the right to access his information with the authorities he dealt with, and to know any change that occurred in it, as well as knowing The status of the guaranteed financing for another person and the extent of his commitment to pay it, making sure that there is no bounced check registered in his name, and knowing who inquired about his report for the past two years,
Al-Musehar added that the credit report is an effective and reliable tool for accessing past and current credit information with credit donors at any time, knowing the credit behavior of the facility with the financing agencies, and contributing to drawing up the business strategy of a leading business enterprise and the financing plan necessary to operate its activities and enhance opportunities for obtaining appropriate financing. From financing agencies, speed up the procedures for obtaining financing for your facility
He pointed out that the benefits of the credit report are not limited to the pioneer only, but are important to the financing bodies, as they contribute to reducing financial risks, building close financing relationships, providing more accuracy in providing appropriate products, and reducing information asymmetries.
He concluded by saying that the credit report is detailed as it comes as a summary and mostly deals with a set of information on the identity of the facility, facilities at the facility level, the distribution of facilities at the risk level, product details, commercial credit products, service product details, maturity and arrears information, information on products Non-performing, bounced check information, enforcement court decisions, a summary of credit products, arrears, and non-performing products.
