BENEFITS OF A CREDIT REFERENCE BUREAU
“if you don’t pay by ……… you will be blacklisted in the credit reference bureau” this is a common statement widely used by most debt recovery staffs in most organizations. CRB has been painted as a Monster that has no good to the economy other than to threaten defaulters to pay their bills and debts. This kind of thinking is retrogressive and will only do harm to the economy.
Credit Reference bureau benefits both the lender and the borrower and it is a tool that can bring benefits to the world economy. In developing countries the CRB concept is very new and has not been widely accepted but with an increase in defaulters, it is gaining momentum but at a slow pace.
The benefits of a CRB should be a win-win situation that enables lenders to access good customers and also for customers with a good credit history to obtain credit at better terms. The benefits that accrue from a CRB are;
• Reputational collateral
• Business growth
• Improved margins
• Increased customer loyalty
• Improved revenue collection
• Fewer defaulters.
Credit reference Bureau therefore plays a role in the growth of the entire economy. Let’s embrace the concept for a better debt culture that benefit all.
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