What is a company credit rating?
When you apply for a personal credit report in Australia, you expect to see a profile of your personal credit history and how well you score as a reliable debtor. A company credit rating works in the exact same way.
It includes all of the credit file information you would expect to see about your own financial history including overdue debt, any defaults that have been registered against you, court notices filed and any history of bankruptcy.
Generating a company credit report
As a result of capturing data from businesses of all sizes and unique databases, our company credit report is superior to others available in the market. We then go one step further and offer you the opportunity to maintain ongoing monitoring of your debtors. This means that you are automatically informed of when that debtor’s financial future falls under question.
If, for example, another supplier or a financial firm registers a default against that debtor, you’re notified of this change with their record on our database automatically updated to include this new information and an adjusted credit rating provided for that customer.
Nobody bats an eyelid when they are asked for their personal information when they apply for credit. It is an entirely reasonable request, after all. How does a lender know what kind of credit risk you pose if they don’t have access to your history and how well you have performed in repaying your debt obligations in the past? In fact, this process will often work in favour of the applicant if their credit worthiness scores very highly. Low risk lending is often reflected in the interest rate a lender provides in their offer and terms and conditions.
When we talk about a company credit rating and how a credit reporting agency assigns this to a business, it is a little bit different but essentially all of the same kinds of elements still apply. However, we have a feeling that you don’t currently employ a business credit bureau to check the corporate credit rating scale that your debtors might fall within. That’s probably why you’re here, reading about how we can help you change that.
Most large-scale corporations will have credit management policies which have been developed through tried and tested over time. These processes will involve an initial credit risk screening process which uses information gathered from a range of public records as well as specific credit files relating to that debtor. Information sources will include the 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. These larger companies will often have dedicated teams and resources and therefore more easily manage their debtor profiles effectively compared to small and medium sized businesses.
We utilise all of these same public record databases as well as accessing extensive information that we have gathered from our own private databases. We have then developed an intuitive platform that is able to provide the same level of vigilance that large scale corporations utilise, but at a much more affordable rate so that small and medium-sized business in Australia can also access these critical services.
If you believe that your business could benefit from an ongoing company credit report management system then register for a free trial by clicking here: https://creditorwatch.com.au/how-it-works. We’ll give you a taste of how intuitive, easy and straight-forward our account management tools can make your receivables process from now on.