Credit grantors the world over place great importance to the age old and proven maxim: “ Know Your Customer!”
Credit grantors need information. In Malaysia, CTOS is clearly the preferred choice of these credit grantors for lead information.
CTOS collates factual information into an electronic media for easy, instantaneous, and accurate retrieval.
Information collated is not based on hearsay or speculation but upon some publication or advertisement or based upon searches normally deemed reliable.
CTOS information does not attempt to show the ‘current status’ of legal cases, searches, etc. it is solely meant as a source of ‘first’ or ‘lead’ information to aid decision making, it must be read intelligently and skillfully. The type, nature of information, date and times are thus crucial factors to consider, if users feel the case may have a significant impact on the matter under consideration they should conduct further probe on these ‘first’ information to find out more.
CTOS however does not rank, rate or give opinions as to the credit worthiness, integrity, character of the subject inquired. It merely provides information that are historical that credit grantors want in their bid to know more about their customers better, past track record, etc.
When you apply for loans, credit cards, hire purchase or leasing facilities, etc in Malaysia, the chances are the credit grantor will make an enquiry in the CTOS system for information leads.
They follow up on these either with the subject concerned or with other relevant parties to find out more.
Credit evaluations are made not based on a single factor but upon how an applicant matches up to a set of lending criteria laid down by the credit grantor. These lending criteria inherently reflect the risk attitudes and risk tolerance levels of the credit grantor concerned.
In short, these criteria reflect how the credit grantors want to do business, their business policies, strategies, their risks propensity etc.
The risk attitudes, tolerance, business philosophy, policies & strategies however vary from one credit grantor to the next. What one credit grantor find unacceptable may well be within tolerable limits of another.
Ultimately, credit grantors will only assume risks that they find it comfortable and acceptable within the limits set by their organization. CTOS plays no part in defining these criteria or the factors considered by them.
Three Basics In Credit Risk Management
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Business extending credit must effectively deal with three fundamental credit processes.
"You want to:-
a) Verify information about the customer
b) Know if risk is within your acceptance levels
Monitor because
"Customer's risk profile can change... anytime"
Be Aware Of Changing Risks
*Track all customers, sponsors for adverse changes DAILY
* Be Pro-Active. Act To Avoid / Minimize Your Losses
"You are in business for profits not losses"
Turn Losses Back To Profits
*Successful recovery improves profits & cash flow
*Lower debt recovery costs
*Enhance debt recovery effectiveness
* Get Your Money Back
CTOS Sdn. Bhd.
Unit A-8-6,8th Floor, Megan Phileo Promenade Corporate Park,
No 189, Jalan Tun Razak, 50400, Kuala Lumpur.
Tel: 603-27708833 Fax: 603-27708834
Objectives:
There are three main objectives of the CTOS Service Centre:
2. Removal Of Records Resulting From Fraud / Mistake
3. Recording Case Settlement / Conclusion
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