5 Questions and Answers about Credit Protection Services

shukla7789 · Post by **shukla7789** » Sun Jan 19, 2025 9:22 am

Whatever your company’s segment, at some point you will certainly need a credit protection service – or even already use them on a daily basis.

More than offering information about a client's situation in the market, credit bureaus bring more security to negotiations and assist entrepreneurs in cases of default and financial control.

Want to learn more about these services and how your skype database can benefit from them? Check out the main questions and answers on the topic below!

1. What does a Credit Protection Service do?

A Credit Protection Service, also commonly known as a “credit bureau”, records and stores information about the credit behavior of consumers and companies for the market.

In short, it is a database supplied by public and private sources – stores, banks, financial institutions, continuous service providers, among others. The bureaus, as managers of this information, also make it available to companies throughout Brazil, which can use it to negotiate more safely .

2. After all, are all credit bureaus the same?

The answer is no! Currently, there are 4 companies that control the main credit bureaus in Brazil – Boa Vista Serviços , Serasa, SPC and Quod. All are regulated by the Central Bank.

The institutions have no commercial connection and their information is not shared with each other. In other words, you may find different data in queries made to each of the bureaus. Or, you may even report a client to all of them at the same time.

3. What are the main areas of activity for credit protection services?

Today, credit bureaus have strengthened their position as market intelligence and analytics companies, offering a variety of services to entrepreneurs. Among the many solutions offered, we can highlight:

Credit Analysis:
When a new customer comes to your company to make a purchase or hire a service, do you grant credit only on trust? To sell more safely, you need to know the buyer's history !

This is where credit analysis solutions offered by credit bureaus come in. They provide complete reports with registration data, debts registered in the client's name, assessment of default risk, Score , among other essential data.

This way, you will have the information at hand to decide whether or not to approve the sale and define the best conditions (interest rate, installments and limits).

Notification of defaulting customers and Negative Registration:
Does your company sell on credit? Then you’ve probably had to deal with cases of defaulting customers! And this scenario, depending on the scale, can be extremely damaging to your cash flow .

In these cases, you can register the debt and customer data with credit bureaus! The defaulter will receive a notification and, if they do not pay the debt within 10 days, their CPF or CNPJ will be blacklisted. In other words, the record will be exposed to the entire market and the customer will have a “bad name” in the market.