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Broker Credit Check [, 5 min. read]

A broker credit check is a procedure conducted by factoring companies to assess the creditworthiness of customers or brokers before agreeing to purchase their invoices. The credit check is done to evaluate the financial stability the customer/broker, ensuring they are likely to meet payment obligations. This proactive approach aims to manage risk and enhance the factoring process by identifying potential credit issues before invoice submission.

How it works?

In Alvys, credit checks can be triggered both manually and automatically.
Users have the option to initiate manual credit checks from the customer/broker profile as well as from the load details page.
Automatic credit checks are performed under the following conditions:
  • During the invoicing process step (queued), prior to sending the batch to factoring company (if last credit check older than 24hrs)
  • When a load is created, if the last credit check was conducted more than 24 hours ago.(not apart of this release)
Note: Accessing the broker credit check feature in Alvys requires integration with a factoring company that has broker credit check capabilities. Saint John Capital Factoring currently supports this.

Setting up the Integration

1
The user must first navigate to the management page and add the factoring integration to a subsidiary of choice.

Manually Trigger Credit Check from Customer/Broker profile

1
Navigate a customer/broker profile of choice and add a factoring invoicing method to the subsidiary where the integration was added. Save the changes.

2
The user will be shown a refresh icon (↻) to manually trigger the credit check.
Note: When the credit check is conducted, a green credit check status icon indicates approval for the customer, a red icon indicates a decline, and a grey icon signifies an unknown credit check status.
The credit check status is also shown next to the customer/broker name.

Manually Trigger Credit Check from the loads details page

1
Select or create a load with a customer who has a subsidiary using the factoring invoicing method.

2
In the Order Details section, click the refresh icon (↻) to initiate the credit check.

Submitting a load to factoring based on the credit check Status

1
Select or create a load with a customer that has a subsidiary using the factoring invoicing method.

2
Advance that load to the “Released” status.

3
Generate the invoice by clicking the “Invoice Load” button.
Note:Invoicing the load will trigger an automatic credit check if the last customer/broker credit check is older than 24 hours.

4
Merge the required documents, such as Customer Rate Confirmation, Proof of Delivery (POD), and invoice, to move the load into the “Queued” status.

5
Navigate to the factoring upload page.

6
Select the load(s) to create a batch.

Note: If a a load has a customer with a credit check declined status, the user will not be permitted to select that load because the factoring company will not accept loads with unapproved customers.

7
Submit the batch.

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