Risk Knockout Checks are applied before a credit application enters the workflow. If an applicant fails one or more of these pre-check rules, Trade Shield prevents the application from moving forward until the issues are reviewed.

These checks are your organisation's first line of defence — catching high-risk or invalid applications at the door so your credit team focuses only on viable candidates.

INITIAL RISK SCREENING (RISK KNOCKOUT CHECKS) — EXAMPLE VIEW

ⓘ Tip: You can still Proceed With Application even if a knockout rule is triggered — but you must review the failed rule carefully and ensure your organisation's policy permits it.

This means the customer has not previously been declined by your company.

Why this matters:

• If a customer was declined for fraud or valid negative reasons, you need to know before sending a new application.
• Prevents re-issuing applications to customers who should not be re-assessed.

⚠ Note: A previous decline does not automatically block the application — it triggers a review. Always check the reason for the original decline before proceeding.

This means the customer has no listed court judgements on their profile.

Why this matters:

• Active court notices are a strong indicator of a high-risk or delinquent payer.
• This rule ensures applications with known bad debt indicators are flagged early.

ⓘ Tip: Court judgements are retrieved in real time via credit bureau data. If a judgement appears that the customer disputes, direct them to the relevant credit bureau to rectify before proceeding.

This rule identifies whether the customer is already active in your system.

Why this matters:

• You may not want to send a new application to an active customer — this may become a Limit Review instead.
• Sending a new application by mistake may cause confusion or frustration. If a customer sends in a new application by error, this helps you detect it quickly.

ⓘ Tip: If this rule triggers, consider whether a Limit Review is more appropriate than a new application.

This ensures the business is active and legally registered (e.g., CIPC data must show the business as active).

Why this matters:

• You should not recommend trading on credit if the business is not in a valid status.
• If the business defaults, the court may not allow judgement to be taken if due diligence was not done.

⚠ Note: Business status is verified via CIPC data. If a business shows as inactive or deregistered, do not proceed with the application until the customer provides proof of active registration.

This rule ensures the business is not listed as a bad payer with the bureau.

Why this matters:

• A credit bureau listing is usually the first stage in legal escalation.
• Listings indicate severe credit risk.
• This information is not public, so the check is essential.

⚠ Note: Bureau listings are not visible to the public — Trade Shield surfaces this data automatically. Take this rule seriously; it is one of the most reliable early indicators of financial distress.

This rule checks the business age.

Why this matters:

• Companies operating less than 12 months are statistically at the highest risk of closure.
• Young companies (<5 years old) generally present higher risk; <12 months is considered very high risk.

ⓘ Tip: If your organisation does extend credit to newer businesses, ensure this is documented as a policy exception and that additional security or guarantees are obtained.

⚠ Troubleshooting

ⓘ FAQs