What's included in a business credit check?
A business credit check from a credit bureau like CreditorWatch involves searching through a debtor’s trading history for any signs of poor credit performance. These commercial credit risk indicators include things like outstanding invoices which have been registered as defaults, a company under external administration, court notices filed against a debtor and any history of bankruptcy.
This is unlikely to be the kind of information your potential debtor is going to volunteer to prospective business partners, and it can prove particularly harmful if not identified early.
Access your business' financial risk
Not getting your invoices paid on time significantly impacts the health of your business. It eats up precious cash flow resources and it can begin to impact on other things like your own business credit score and your payroll obligations.
When you are accepting small debtors, the risk isn’t always so high. But if you intend to begin trading with a company that puts your own business at substantial financial risk, don’t you want to know that their credit history is up to scratch first?
When you apply for a loan, or a post-paid contract on a phone, or any service which relies on offering you goods or services before you have technically paid for them, you are personally subjected to a credit check because it is an important and easy indicator of how likely you are to pay your invoices on time. It’s standard practice, after all. This is standard and accepted practice so why aren’t businesses around Australia employing company credit checks before they extend a line of credit to a trading partner? Well, some of them clearly are but now it’s time to extend that service to all Australian businesses, no matter how big or small.
CreditorWatch is the proudly Australian owned and operated credit watch service offering you the ability to accurately evaluate potential and current debtor risk. We provide you with not only a once-off business credit check for a company that you are seeking a credit report for, but also ongoing monitoring of your debtors for any signs of financial danger which might impact their ability to pay their bills. You may have heard of an ASIC risk profile. ASIC is just one of the sources that we gather our exhaustive credit file details from. Our information is gathered from our own detailed reference check databases and then our information gathering extends out to a range of reputable financial reporting sources that only the best credit check companies think to check.
We take information from sources which include, as already mentioned, Australian Securities and Investments Commission (ASIC), the Australian Business Register (ABR), Australian Financial Security Authority (AFSA bankruptcy data), as well the Australian Courts and debt collection agencies. Our credit report is thorough and up to date, offering you the ability to assess the credit worthiness of your potential or current customer.
If you believe that it’s about time that your business starting adopting a stricter credit search and receivables practice, follow this link to find out how to qualify online for a free trial of our services: https://creditorwatch.com.au/how-it-works.