How credit checks helps to prevent employees fraud in business?

How credit checks helps to prevent employees fraud in business?

Expert Solution

Employee fraud are one of the major reason due to which company are losing on a significant chunk of the profits so there will be credit checks which are available in place for the company and they will be regulating the credit which are given to various customers of the business so company will be trying to place credit checks which will be determining the creditworthiness of various debtors and they will be trying to analyse this debtors according to their respective criteria and those debtoes who cannot make their repayment are significantly segregated from the others, so there will be a check on the employee who has provided him with bad credit so it will be hampering the growth of the organisation and since credit check can perform segregation of various customers it will be helping the business in catching up with the employee fraud in regards to providing bad credit.

Credit checks is system which are are combination of various methods which is put in place for the business in order to determine the credit worthiness of the business and customers so they will be analysing various creditors according to the benchmarked criteria and if employer has provided these loans to those customers who are not having a good credit repayment ability and a higher creditworthiness, will be filtered out and it will help in controlling the fraud.

jeff jeffy answered 2 years ago

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