Credit evaluation is becoming an integral part of business in Malaysia as companies begin backing their business decisions with credit ratings to minimise chances of default.
Consequently, a new trend is emerging: companies are starting to outsource credit evaluation services to an independent third party to enhance corporate governance and transparency.
“Credit evaluation is becoming an integral part of business processes in Malaysia as companies are beginning to understand how critical it is for business decisions to be made without the worries of account receivables in their balance sheets,” said Infocredit D&B (M) Sdn Bhd managing director Tan Sze Chong.
Companies were also beginning to back these business decisions with both internal and external (third party) credit ratings on their customers to minimise any chances of defaults, he added.
