Credit vetting

Business problem
Credit vetting can be carried out using the services of a third party utility or a centralised utility within an organisation. The information provided by the utility may be either the initial record relating to the customer or an updated financial position. In both cases it is key that this information is effectively disseminated to all interested applications as a reliable and transactional process, particularly where the provision of service is contingent upon the outcome of the credit vetting process.

Technical issues
Applications interacting with a credit utility often require a two stage interaction. Initially, a credit line reservation is made which reserves credit capacity and permits the execution of a business transaction. Secondly, when the business transaction takes place, the reservation is replaced by the firm utilisation of the credit line. Alternatively, the credit line reservation could also be cancelled should the transaction not occur or even cancelled by the central utility if the transaction has not occurred within a certain timescale thus rescinding the credit approval.

Cohesions solution
The potentially complex series of interactions where reservations of credit capacity are required and then either cancelled or utilised is catered for by the “Provisional-Final” transactional model. The certainty that distributed applications require that credit approval has firstly been granted and then called upon (or cancelled) is provided by the MAK product features within Cohesions. Cohesions also allows for either party taking part in the transaction to terminate it.