Cash Flow Cash management Credit Management Credit Risk Finance Small Business SMEs
4 mins read

How CreditorWatch protects businesses, while saving them time and money

A common struggle facing small business owners is juggling the need to protect cash flow from risky trading partners, with the lack of time and resources available to manage this risk properly.

As one of Australia’s most trusted credit reporting agencies, CreditorWatch is the one-stop shop to help you preserve your cash flow, prioritise your collections, and grow your business. We empower your business to succeed through easy-to-use credit risk management tools, credit reporting capabilities, debt collection resources, and automatic monitoring programs – with insights provided in plain-English.

The CreditorWatch difference

CreditorWatch is Australia’s top commercial credit reporting bureau, assisting businesses with sophisticated credit management solutions to strengthen their due diligence, mitigate the risk of bad debt, and secure their cash flow.

Our extensive datasets are comprehensively sourced and translated into simple terms, utilising easy-to-follow graphs, reports, and insights. The information that informs our analysis includes:

  • 11 million trade lines from Xero, MYBO and corporate ATBs
  • Over 18.5 million credit scores calculated monthly
  • 35,000 unique payment defaults captured annually

Established in 2010, we are 100% Australian owned and operated, and assist over 55,000 customers in managing their credit risk exposure, from sole traders through to ASX-listed companies. At CreditorWatch, we attribute our success and client satisfaction to our expertly skilled employees, who have propelled us to earn Great Place to Work certification, and a spot on the AFR BOSS’s Best Places to Work list for 2022.

At Creditorwatch, we seek to provide in-depth analysis, informed by the most appropriate data, and delivered by a team that seeks to go the extra mile. In this way, we empower our customers to truly recognise their growth potential.

The benefits of outsourcing your credit risk management

Say goodbye to data errors in the client onboarding process

Are you still relying on outdated, paper-based credit applications that you need to manually verify page by page? The risk of an error is simply too great. An effective way to avoid instances of incorrect or missing customer data (as well as the time wasted fixing the mistake) is to switch to automated customer onboarding, using the ApplyEasy platform.

ApplyEasy is an online platform designed to simplify the onboarding of new clients seeking a line of credit with your business. One page and one click is all it takes to upload the information into our system. It eliminates the capacity for human error, fraudulent information and the wasted time of staff.

Integrated seamlessly with ASIC, ABR and the CreditorWatch database, ApplyEasy can auto-populate client details as they fill out the application. It will then automatically verify new client information online, and quickly identify risky entities (leveraging CreditorWatch’s extensive business data). You can even automate the approval process, if desired.

See the credit risk of clients, partners and suppliers

Before you engage with any new clients, trading partners or suppliers, it’s crucial that you understand the level of credit risk that company poses to your business. A CreditorWatch business credit report offers you the gold standard in performing due diligence on customers.

Our easy-to-follow reports illustrate the default risk of entities, categorised from A1 to F. They incorporate data from more than 50 public and private data sources to highlight past adverse events, such as:

  • Number of credit enquiries
  • Defaults registered against the company
  • ATO tax debt defaults
  • Court actions
  • Adverse cross directorship information
  • ASIC notices published against the business

Utilising these tools, the team is empowered to make more informed decisions around who you choose to do business with.

Be the first to know when your customers have financial issues

Nowadays you cannot rely on the assurance of a handshake to trust that a client is performing well financially. The best way to future-proof your cash flow, and be the first to know when a customers’ credit risk changes, is through CreditorWatch’s 24/7 monitoring and alerts.

Our 24/7 credit monitoring tools are always watching your customers payment behaviour, and will contact you automatically if critical information changes – such as notice of a court action, non-payments to other suppliers, or voluntary administrations.

Automatically monitoring adverse events allows you to focus on growing your business, so you can sleep soundly at night knowing we’re watching your back.

Spot credit risks in your aged trial balance and prioritise collections

Let’s be honest, it’s likely you don’t have the time nor the resources to conduct constant monitoring and risk analysis on your trading partners. Debtor management tools can offer a lifeline to businesses that have struggled with late paying customers in the past, and need support pinpointing risky debtors and prioritising collections.

CreditorWatch’s DebtorLogic platform does just this – analysing your aged trial balance, and identifying payment trends and warning signs of credit risk across the market. Integrating seamlessly into your CreditorWatch dashboard, you’ll be able to gain an overview of your debtors, including:

  • Which entities owe you money
  • How long this payment has been owed
  • How this compares to industry standards.

If deteriorating payment behaviour is identified, you’ll be able to make high-level management decisions around whether to prioritise collections or adjust payment plans, helping you to get paid faster. DebtorLogic can assist you in reducing days sales outstanding (DSO) and boost the collection rate of your portfolio.

Reduce overdue invoices and automate accounts receivables tasks

Finally, you may want to consider improving and automating your accounts receivables process with CreditorWatch Collect.

The innovative tool automates menial tasks, such as prompting debtors to make payments on time, freeing your accounts team to focus on high-value tasks. Easily integrated into software, like Xero and MYOB, CreditorWatch Collect assesses your invoice data, and gets to work protecting your cash flow.

 

To discover the CreditorWatch difference, or for more information on our suite of products, please don’t hesitate to get in touch with Brendan Sherry, Key Accounts Manager, on 0403 744 642.

cash cash flow cash management cashflow finance risk management small business
Michael Pollack
Head of Media & Communications
Michael joined CreditorWatch in July 2021. He has more than 20 years’ experience in business journalism, marketing and communications strategy and digital content development. He is passionate about communicating to the business community how CreditorWatch’s product suite can help them grow and protect their companies.
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