An MSME can check a business buyer's credit risk by combining the buyer's GST record, reports from other suppliers, court cases and, with the owner's consent, the owner's credit score and loan repayment record. FundRaksha Trust's GST + Financial report brings these together by GSTIN and ends with one of three answers: safe to give credit, give credit with care, or avoid credit, with suggested terms. It is guidance on the data available that day; the decision stays with you.
What goes into a buyer credit check
The credit decision in the GST + Financial report is based on:
- GST status and the age of the business.
- The GST filing record.
- Defaulter reports from other suppliers.
- How the buyer pays suppliers who use FundRaksha (shown only when two or more suppliers report, and never with their names).
- Pending court cases over dues.
- The owner's credit score and payment delays in the last 12 months.
- Loans written off, suit filed or wilful default on the owner's credit record.
Consent for the owner's credit report
A person's credit report can be fetched only with that person's consent. In FundRaksha Trust you tick a box confirming you have the business owner's consent before the report starts, and the confirmation is recorded with date, time and device.
- The app finds the proprietor, partners or directors from GST and company records.
- It asks for the owner's mobile number only if the credit bureau needs it.
- If there is no number, you can finish with court cases only.
- If the owner has no loan history, the report says so and the GST and court parts are still delivered.
- The report is charged only once it is ready.
Reading the three answers
| Answer | Suggested terms |
|---|---|
| Safe to give credit | Normal terms look reasonable, for example 30 to 45 days. |
| Give credit with care | A lower limit and short terms, or part payment in advance. |
| Avoid credit | Ask for advance payment or cash on delivery. |
Then set a credit limit and credit days for the buyer in Receivables, and the app warns you before an invoice takes the buyer over the limit. See credit terms for B2B sales.
Keep checking after the first order
A buyer that looks sound today can change. The watchlist re-checks GST status, court cases and defaulter reports every month and alerts you when something changes, such as a GST cancellation, a new court case over unpaid dues or a new defaulter report. Use “Run full check again” to get today’s data on a buyer whenever you need it.
Full details are on the buyer verification page.
Frequently asked questions
Can I check a business's credit score in India?
A business owner's personal credit report can be fetched only with the owner's consent. FundRaksha Trust fetches it from a credit bureau after you confirm that consent, as part of the GST + Financial report.
Can I check a buyer's CIBIL score without consent?
No. Credit reports on a person need that person's consent. Without it, rely on the GST record, court cases and reports from other suppliers.
What if the buyer's owner has no loan history?
The report says so. The GST and court parts are still delivered, and the report is completed and charged as normal.
Is the credit decision final?
No. It is guidance based on the data available that day. You make the final call.
How often should I re-check a buyer's credit risk?
Before the first order, before any large order, and regularly for buyers who owe you money. The watchlist does the monthly re-check for you.
This guide is general information for Indian businesses, not legal or tax advice. GST data shown by any tool comes from public records and should be confirmed on the GST portal before you act on it.