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Credit Risk Management

Do you have an effective credit risk management process in place? Most small businesses don’t. Without effective credit risk management practices, you run the risk of accruing bad debt against customers who can’t meet their financial obligations. When your invoices are not paid, you cannot meet your own financial obligations and one business’ bad debt can spread into many within a very short time.

Here’s how we can help.

CreditorWatch is an Australian owned and operated credit risk management service. We offer businesses of all sizes an affordable credit risk management practice which offers exhaustive reporting on the business credit history of potential and current debtors. With our help, you can develop risk measures which assist in mitigating counterparty risk, avoiding bad or insolvent debtors and maintain the health of your own balance sheet.

We assist local businesses to plan ahead and better control the credit they offer their customers. With CreditorWatch, you can more effectively manage your receivables accounts and avoid pitfalls which affect cash flow. Cash flow problems are among the most lethal financial concerns for small businesses and often lead to drawing on high interest short-term loans to bail out immediate problems, which only lead to more problems further down the road.

Our credit risk grading system utilises information gathered from a range of financial institutions including the Australian Securities and Investments Commission (ASIC), the Australian Business Register (ABR), Australian Financial Security Authority (AFSA bankruptcy data), as well the Australian Courts, debt collection agencies and our own extensive databases. We can provide you with a thorough report on the health of a debtor or debtors before you engage in trade and while you continue to do business with them. Our services include not only credit risk models before you commit your business but also ongoing monitoring and regular notifications if a debtor files for insolvency, has a default filed against them or if any court actions are brought against their company.

This kind of risk assessment software has traditionally been expensive and available only to large corporate institutions as part of their internal credit management cycle. Smaller Australian businesses found it difficult to manage the cost of debtor checks, often relying on much tighter margins and hoping that debtors were reliable. CreditorWatch has helped to turn this around by offering affordable solutions to business credit risk management including a complete receivables option which streamlines your accounts receivable practice from start to finish. You can even use our logo on your outgoing invoices to help inspire debtors to settle accounts quickly.

Maintaining a business in a hostile market can be difficult so credit reports don’t always show the full picture, either. There will be times when your business must rely on offering credit to your customers, even if you believe that credit risk is high. When you can effectively access a debtor’s complete history, however, you can be proactive about how you manage potential high-risk customers. You can employ a range of management tools and practices which allow you to onboard a new debtor correctly and maintain tight control of how your business trades with them. With our help you can also quickly and easily file a default against an existing debtor, helping other small businesses to avoid them in the future if they prove too high-risk.

Get in front of your accounts with CreditorWatch and manage risk more effectively for your business. We offer a comprehensive free trial of our services which include management of credit practices, accounts receivable processes and reporting access on the financial health of your debtors. Click here to learn more about our free trial: https://creditorwatch.com.au/how-it-works