By Robin Duff
Credit Net will enable clients to automatically check up on potential business partners' debt history and credit reports. The service will cost 500 dirhams per month.
The rising problem of debt defaulting in the UAE is set to be addressed by the first ever online credit control facility, Credit.net, which will be launched by Decol Debt Collections in December.
Bounced cheques represent a huge problem in Dubai, with local police estimating that dealing with enforcing the issue today takes up 60% of their time.
“Since there is no legal requirement for companies to give audited reports, the incidence of bounced cheques continues to rise— and with the entire system running on credit, one break in the chain has a knock on effect throughout the market,” said John Ray, partner, Decol. “The bulk of bad credit comes just a level below that of listed companies, either through firms reneging on their commitments, or failing to pay on time.”
The online interactive service will enable customers to get instant access to Decol datawarehouse of debt checks and credit reports on suspect businesses, with the clients also being able to add to the database on habitual non-payers, after due vetting by Decol. The service will be offered at 500 dirhams per month for businesses, with plans to extend it throughout the GCC.