In installment sales, profit is in the payments that come back. The biggest loss comes from debts that never do. Many stores judge a customer "by how they look" — that's a gamble. Below are the 5 steps for systematically checking a customer before selling on installment.
1. Verify Identity (MyID / passport / PINFL)
The first step is: is the customer really who they say they are? Take the passport and PINFL details, and verify biometrically through MyID. This prevents signing a contract with a fake identity or someone else's documents. Don't sell on installment without a verified identity — recovering the debt will be nearly impossible.
2. Check Credit History (KATM Scoring)
Has the customer borrowed before, and did they pay on time? KATM (credit bureau) scoring answers this question. A low score is a high-risk signal. This is the most objective way to assess a new customer without guessing — a number, not a feeling.
Accessing KATM data requires a contract with the credit bureau and the customer's written consent. You cannot send a query without that contract.
3. Check Your Own Payment History
Has this customer been late with you before? Check your own shop's internal payment history — repeat late payers show up immediately. Before signing a new contract, look at that customer's previous schedule: how many instalments were late, and by how many days.
Important. Processing a customer's data requires their written consent and a lawful basis. Sharing that data with other shops, or keeping a shared list, requires separate consent — do not do it without legal advice.
4. Assess Ability to Pay
Can the customer afford it? Compare the monthly payment to their income. The general rule: the monthly payment shouldn't exceed 30–40% of income. If it does, extend the term (which lowers the monthly amount) or increase the down payment. This lowers the likelihood of delay.
5. Register Collateral Correctly
For phones and appliances, collateral protection matters. Register the sold device as collateral in the system. If payments stop, protection is applied — with the customer's consent — through a device-management (MDM) profile installed on the device. Note: blocking an IMEI on the network is within the authority of the operator/state — a store cannot do this itself, while a device-management profile is a lawful alternative.
How Long Do These Checks Take?
By hand — each one in a separate place, taking a lot of time. In a purpose-built system, all of them are done on one screen, on the customer's card, in a few minutes: identity, KATM, internal payment history, payment schedule, and collateral — together.
Conclusion
Checking a customer before selling on installment is the cheapest insurance. The five steps (identity → credit history → internal payment history → ability to pay → collateral) significantly reduce non-performing payments. Decide with data, not with a gut feeling.
Loome brings these checks (MyID, KATM scoring, internal payment history, payment schedule, collateral) together in a single system. See the live demo →
Frequently asked questions
Is it mandatory to check a customer before selling on installment?
It's not mandatory, but it's recommended. Selling on installment without a check is a gamble. A few minutes of checking significantly reduces the risk of a non-performing payment.
What is KATM scoring?
KATM is a credit bureau. It shows a customer's credit history: whether they've borrowed before and whether they paid on time. This helps you assess a new customer's reliability.
Why is MyID needed?
MyID is biometric identity verification. It confirms that the customer is really who they claim to be and that their documents are valid, preventing you from signing a contract with a fake identity.
How can you assess a customer's ability to pay?
Compare the monthly payment to the customer's income. The general rule: the monthly payment shouldn't exceed 30–40% of income. Increasing the down payment also reduces risk.