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Company Credit Score

What is a Credit Score?

A credit score provides an instant assessment of a company’s creditworthiness without you having to perform a thorough analysis. CreditorWatch analyses various contributing factors, summarising the risk levels of a business entity.

With six risk levels from low to critical, credit scores can help you decide whether to begin or cease trading with a business as to avoid the hassle of dealing with slow or non-paying customers.

Historical Trends

Find out if a business's credit score has shifted in the last 12 months. Deteriorating payment behaviour is a leading indicator of high credit risk.

Key contributing factors

  • Entity type, age, structure and operating history
  • Number of directors and director history
  • ASIC and ABR changes
  • Court actions, payment defaults, insolvency notices and mercantile inquiries
  • Industry and trading history
  • Number and frequency of credit enquiries
  • Suppliers monitoring the entity

A company credit score works exactly the same way a personal credit score does. It takes information about a business and how well it has met its financial obligations in the past and includes checks made on whether the pay their bills on time, have been taken to court or is a serial late payer, all of which are leading indicators of the health of a business. Just as if you would apply for a credit card and your personal information is taken to access your credit history, a company credit score is produced off the back of credit information collected on the business.

Unlike a lender you may not be issuing your debtors a business loan. You are, however, offering goods or services on the promise that they will pay you according to your invoicing terms. So, wouldn’t a company credit score help you to make a more informed decision about whether you want to deal with a debtor?

CreditorWatch acts as a corporate credit score provider, accessing any business or company trading in Australia. Our business credit report is compiled from a search of credit information available from our not only own extensive databases, but also from the information made available by other reporting entities like 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.

On top of company credit scores and credit reports, we offer ongoing, real-time monitoring of your customers. This includes regularly accessing their credit rating score using the information we are constantly gathering. You are then notified immediately of any changes that occur to your customers.

Generally, company credit score information has not been an affordable option for small and medium-sized businesses to access on a regular basis. That is, of course, until now. We have developed a suite of affordable accounts management tools designed to assist small businesses and owner operator outfits in managing their cash flow more effectively with long-term debtor solutions.

We can help to ensure that your debtors adhere to your invoice terms and conditions, for example, by including our logo on your invoices, which may encourage businesses to settle their accounts with you promptly. We can also assist with providing assistance for ‘next step’ procedures like issuing official letters of demand to late payers or even, if the situation calls for it, to register a default against one of your debtors.

It is also worth accessing and monitoring your own company credit score to protect against the possibility of fraud or other illegal activities committed under your own business name. Identity theft is one way that your business credit score can be severely affected over a very short period of time. However, with a regular monitoring service dedicated to notifying you of any sudden credit changes to your business credit files, you will ensure that you remain informed about your company credit score at all times.

If you’re interested in finding a long-term solution to debtor management and ongoing company credit score information that will help you to make smarter business decisions, then we would like to help. Follow the link below to find out how you can register for our free trial and discover for yourself how easily you can integrate our account management solutions into your accounts receivable process, starting today.

Click here to find out more: https://creditorwatch.com.au/how-it-works