In the current economy, filled with uncertainties, businesses are being forced to rapidly change and become more adaptable. And many are not able to manage the transition. CreditorWatch’s Business Risk Index data forecasts insolvencies to steadily rise across the remainder of 2022.
To manage emerging risks, it is essential to monitor your trading partners on an ongoing basis. By staying aware of their latest financial health, you’ll be able to proactively mitigate risks and secure your cash flow.
CreditorWatch’s automated monitoring service works 24/7, delivering key updates as soon as they occur. This helps you stay vigilant and make more informed decisions to protect your business.
Check out these five benefits of CreditorWatch’s monitoring and real-time alerts:
1. Be proactive and stay ahead of other creditors
By the time you realise that a customer has defaulted or collapsed, it’s often too late. You’ll be competing with other creditors to try to recover your debt. It’s unlikely that you’ll be able to get your debt back with such a reactive approach to debtor management.
Ongoing monitoring helps you take a proactive approach to managing your ledger. CreditorWatch gives you the latest information about your debtors, enabling you to act before other creditors. This increases your chances of recovering debt and protecting cash flow.
2. Spot early warning signs of struggle
By monitoring your trading partners 24/7, you’ll be able to uncover hidden signs of financial struggle. CreditorWatch alerts you about high-risk indicators, including deteriorating payment behaviour, payment defaults, RiskScore changes, mercantile enquiries, court actions, insolvency notices, administration appointments and more. This reveals which trading partners are experiencing cash flow problems, giving you a clearer understanding of how they are actually doing.
3. Watch out for adverse director activity
When working with another entity, it is crucial to monitor their directors and stakeholders to understand exactly who you’re working with. Find out if they are setting up multiple companies, involved in cross directorships or engaging in illegal phoenix activity. Stay informed about the latest adverse information against these individuals, including court actions and bankruptcies, so you can proactively mitigate the knock-on effects of these events.
4. Mitigate risks with speed and accuracy
Leverage CreditorWatch’s exclusive data to gain a comprehensive picture of your trading partners’ financial health. Receive real-time alerts for key updates, including entity status changes, ASIC and ABR changes and potential red flags. This gives you a competitive advantage, enabling you to act with speed and accuracy. Proactively implement risk mitigation measures, like adjusting credit limits, asking for cash on demand or expediting debt collection. Use this information to predict future performance and maintain a stable upward trajectory.
5. Gain more control over who you do business with
There is always an inherent risk that a customer can’t or won’t pay their bills; various factors may affect their ability to pay on time. By staying on top of their latest financial state, you’ll be able to predict their likelihood of default and act quickly to avoid unpaid invoices and bad debt.
When working with suppliers, some of them may fail to deliver, resulting in potentially disastrous financial and reputational consequences. Monitor your suppliers 24/7 to check on their performance, to avoid working with those are unable to provide their goods or fulfil their contracts.
It is also important to monitor your business partners and investors to check that they’re financially stable and reliable. Stay informed about any risks which could affect their ability to deliver on their claims or promises. This will allow you to grow your business with confidence.
Whether you have one or thousands of customers, CreditorWatch empowers you with the latest information to make smarter business decisions.
Interested in using CreditorWatch’s monitoring service to protect your business? Get a free 14-day free trial today