Benefits of using secure QR Codes in Warehouse Receipts for better credit analysis and bank financing
- Rahul Sinha
- Mar 14, 2017
- 2 min read
How to secure and verify warehouse receipts for credit analysis and bank financing
Credit analysis is an important part of regular bank financing. While doing a credit analysis, bankers and lenders have to rely on documents to support the claims as given by the entity being examined. For example : the banker will rely on warehouse receipts to certify the inventory of finished goods or raw materials including details like product, grade, quantity etc. This is important as the value of this inventory will determine the collateral that is available as security for the financing which is extended to the borrower
The higher the value of the inventory, the greater the margin of safety in the lending for the same amount of loan. It is easy to do the number crunching once you have got the details but if the information itself is not verifiable or turns out to be incorrect, then all the analysis remains only on paper !
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It is estimated that something like this must be happening with reasonable frequency across the world. This wilful faking/tampering of receipts and other documents makes it difficult to verify and authenticate the information. All sophisticated data analysis tools can come to nought if the underlying information itself is suspect.
Thankfully with the advancement of technology we have a mechanism to secure the documents and ensure their authenticity. It can be done with the help of a secure QR code which is generated at the time of the final document or receipt being produced and is digitally signed by the issuing organization (which can be the supplier or the approved valuer, auditor etc). The QR code will contain the required details once these are stored inside the secure QR code, they cannot be manipulated given the technology and security involved in the generation.
Snapshot of a secure warehouse receipt and the verification results
Subsequently the relevant information along with the signature of the issuer can be verified by any third party (including the bank) which can then be assured that the information is correct and can be used in the analysis and computation. All in all a pretty straightforward and easy solution to implement and generate trust in the documents !
