This Limit Recommendation was determined per their financials for 2024, which was only R2,2 million for the year.
Thereafter we apply a turnover percentage multiplier to this turnover from the financials, which gives you the maximum limit, in this case, R34,000.00.
Because there isn't a payment risk or default risk available on this customer, we say give them 30% of the maximum limit, according to our Risk Adjustment Framework.
We could increase your Turnover Percentage Multiplier, which will give you a more aggressive approach in the market if you would like to.
For instance, if we applied a 3%, the Limit Recommendation would have been R20,000.00 over 30-day terms, or a very aggressive 4% would have given a Limit Recommendation of ~R27,000.00 over 30-day terms.