Sydney (Australia), 9 May 2024: CreditorWatch, a leading Australian commercial credit reporting bureau, today launches a new debt recovery tool, Debtor Management to help finance teams and small business owners (SBOs) and operators recover a larger proportion of overdue debt.

This solution launches at a critical time, where late payment times are increasing and business insolvency rates are at record highs.

Businesses are struggling to maintain a healthy cash flow, and having a best-practice debt recovery process in place can be the difference between surviving these tough conditions or not.

According to ASIC, ‘inadequate cash flow or high cash use’ is the most common reported cause of business failures by registered liquidators (52% of reports).

CreditorWatch CEO Patrick Coghlan says Debtor Management can help small businesses avoid being taken advantage of by larger businesses.

“We know that SMEs are three times more likely to be paid late than larger businesses,” he says. “The solution has already helped one business recover over half of their outstanding balance within seven days of using it. It’s proof that Debtor Management is a powerful tool in helping small businesses get paid and improving cash flow.

“We have made this tool available to all existing customers at no extra cost. It gives small businesses a boost and an extra chance to survive in these tough trading conditions.”

How does it work?

Debtor Management helps businesses manage and escalate late payments with ease by:

• Reducing the amount of manual work involved in identifying late-paying customers, assessing the risk of non-payment
• Escalating overdue debt that often gets ignored or unactioned by debtors.
• Automatically creating the most appropriate type of collection letter depending on the number of days and amount overdue for each customer.
• Freeing up time for finance teams and business owners while improving their collections rate to improve their cash flow.

Availability

This new solution is available to CreditorWatch customers at no extra cost to their current subscription, demonstrating the company’ commitment to helping Australian businesses trade more confidently with their customers.

Success Story

During the pilot phase, a CreditorWatch customer used Debtor Management to create 65 collection letters within 10 minutes and successfully recovered over $500,000 in overdue payments within seven days.

About CreditorWatch

CreditorWatch is a digital credit reporting agency, headquartered in Sydney. From sole traders through to ASX listed companies, more than 50,000 Australian customers avoid high-risk debtors and ensure they get paid on time. CreditorWatch customers can easily search for and monitor the credit history, court actions, payment defaults and insolvency notices associated with any business entity in Australia and New Zealand (including sole traders, trusts and partnerships) giving them an incredibly accurate picture of the risk posed to their business. The company was founded in 2011 and has offices in Sydney, Melbourne and Brisbane.