Lessons from Australia’s most innovative business credit bureau
Credit risk due diligence can take on many forms, but none as robust or as effective as using a credit bureau. In my three years at CreditorWatch, Australia’s most innovative credit bureau, plenty of my customers have had an “aha!” moment when they realise they can’t do business without it.
CreditorWatch offers an end-to-end credit risk management solution for businesses of all sizes, and provides so much more than just company credit checks.
These are the most common lessons my customers have learnt from using a commercial credit bureau. How well do they resonate with you?
Lesson #1: You need to monitor all of your debtors, not just the riskiest
When it comes to credit risk management (and to be honest, most things), prevention is better than cure. I always recommend my customers monitor their entire database, not just their newest debtors or the ones that have been slow to pay up in the past.
By watching your customers with CreditorWatch’s 24/7 monitoring tool, you’ll be alerted to all instances of suspicious activity as and when they happen. It’s these small signs, like when a business stops paying another supplier or has a default registered against them, that hint at trouble brewing further down the road.
Act on these signs sooner or later to protect your business from future cash flow issues and legal action.
Lesson #2: Not all credit bureau reports are created equally
Our credit reports are unique in a number of ways, and our data is what sets us apart. On a business credit report, you’ll find payment default and trade payment data provided by our 50,000+ strong database, including sole traders and some of the biggest companies in Australia.
90% of CreditorWatch customers don’t use any other credit bureau, so you won’t be able to find this data anywhere else. When you open a credit report on CreditorWatch, the most important data is highlighted at the top in interactive widgets, including a company’s credit score.
Another way we stand out as a credit bureau is our subscription-style membership. We want business credit risk management to be as simple as signing up for a Netflix account. When you sign in, risk information for all of your customers is at your fingertips. We’re always adding new features to the product to ensure your changing credit bureau needs are met.
Lesson #3: Now is the time to become a secured creditor
Preferential payment occurs if you’re not a secured creditor and you get paid by an insolvent company within 6 months of the company liquidating. This payment is deemed unfair to other creditors who didn’t get paid. A liquidator can recover these payments if you’re an unsecured creditor.
You can protect yourself by securing your interests on the Personal Properties Security Register (PPSR) before you offer credit or accept payment from debtors. CreditorWatch offers an award-winning product to simplify the PPSR process – PPSRLogic.
PPSRLogic makes the process of becoming a secured creditor and managing your registrations a breeze. It’s fully integrated with CreditorWatch so you can access all the tools you need in a few clicks.
When the economy already seems so uncertain, I’m proud that CreditorWatch offers creditors the reassurance that they’re doing everything they can to reduce their credit risk. To find out if a credit bureau is right for your business, please feel free to get in touch – I’m more than happy to help.
You can reach me via email at firstname.lastname@example.org.
Borna has been at CreditorWatch for three years, helping Australian businesses reduce their risk of bad debt from the Melbourne office. As a Key Account Consultant, his role focuses on identifying, marketing and targeting larger trade credit organisations across the country.
He’s particularly passionate about showcasing how CreditorWatch’s technology enables businesses to improve, automate and streamline their internal processes.
When he’s not helping businesses with their credit risk management, you’ll find Borna enjoying the company of his young daughter, family and friends, and cooking up a storm at home. To learn more, connect with Borna on LinkedIn or get in contact via the details below.
- Email: email@example.com
- Phone: 0432 807 297