Financial Thresholds — Controlling What Your Customer Is Asked For
? 4 min read 6 questions answered
Financial thresholds determine what documentation, bank statements, financial statements, or just an estimate, your customer is asked to provide in step four of an application. Use this article to understand how your thresholds are set, and how to adjust them to suit your industry.
In this article
| → What financial thresholds control | → What happens at each level |
| → Changing what's requested | → The mandatory field toggles |
| → If a customer edits their limit | → Why accurate turnover matters |
Q1: What are financial thresholds and what do they control?
Financial thresholds are two figures, a small amount and a medium amount, set on your account during onboarding. They determine what financial documentation is requested from your customer during the application process: bank statements, financial statements, or just an estimated turnover figure.
Q2: What happens at each threshold level?
Your thresholds decide what's requested in step four of the application, based on the credit limit submitted:
- Below the small amount: only the estimated annual turnover field is requested.
- Between the small and medium amounts: the applicant's three most recent months of bank statements are requested.
- Above the medium amount: financial statements are requested instead.
For example, if you set a limit of one hundred and ten thousand rand and that falls between your small and medium thresholds, your customer will be asked for bank statements. A limit of three hundred thousand rand, above your medium threshold, would trigger a request for financial statements instead.
Q3: Can I change what documentation is requested?
Yes. Your thresholds are fully adjustable to suit your industry and customer base. If your customers are more comfortable providing financial statements than bank statements, your account can be configured so bank statements are never requested, only financials.
What to do:
- Reach out to your key account manager or the support team.
- Let them know what's realistic for your industry and customers.
- They'll arrange a session to review and adjust your thresholds.
ⓘ Tip: Some industries, such as the tyre industry, are particularly private about sharing financial information. It's worth aligning your thresholds with what's realistic for your specific customer base rather than leaving them on the default settings.
Q4: What do the financial estimate and financial information toggles do?
Beneath your two threshold figures are two toggles, a financial estimate field toggle and a financial information toggle. These determine whether the relevant field is mandatory for your customer to complete in step four, or optional. How you set these depends on your industry and the experience you want your customers to have.
Q5: What happens if my customer changes their own credit limit in step three?
If you've enabled this functionality, your customer can edit their requested limit in step three. If they increase it past your small amount threshold, the requirement adjusts accordingly, even if the limit you originally offered wouldn't have required it. For example, if you offer forty thousand rand but your customer increases this to one hundred and fifty thousand rand, they'll be asked for bank statements in step four.
⚠ Note: If you allow customers to edit their own limit in step three, keep in mind they can inadvertently create a documentation requirement for themselves that the original offer wouldn't have triggered.
Q6: Why does getting an accurate turnover figure matter?
An accurate turnover figure helps gauge a customer's affordability properly. Wherever possible, an actual turnover figure is preferred over an estimate. Where bank statements are provided instead, these can be used to calculate a twelve month average as a reliable substitute.
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