Sufficient Bank Code but Limit Recommendation is Less

After reviewing the case, it appears the customer has the financial capacity to afford the requested amount of R200,000, as indicated by their bank statements. However, our recommended limit is influenced by the high/unknown default risk identified. Specifically, there is a significant likelihood of delayed payments or default within the next 6–12 months.

In line with our Risk Adjustment Model, if a business meets certain high-risk criteria, our standard recommendation is to offer no credit, regardless of affordability. Given the current risk assessment, it is advised to proceed with Cash on Delivery (COD) terms until a re-assessment can be conducted in six months.

That said, if you are comfortable with the associated risks and prepared to proceed despite the potential for default or delayed payments, you may choose to approve the requested amount. Please note that the elevated Default Risk and Payment Risk scores underscore the possibility of poor payment behavior.

I can see that based on the bank statements they can afford the R200 000 they have requested. 

The approval of any applications always remains within your own discretion.