What is a payment default?
Payment defaults are just one of the unique data sources that CreditorWatch uses to set itself apart from other commercial credit bureaus.
It also generates an alert to other businesses in the 50,000+ strong CreditorWatch community of their failure to repay a debt.
The stats that matter
- 91% of customers will not engage with a company that has a default.
- Over 50% of businesses that incur a payment default will go into administration within 18 months.
- A director that incurs a payment default is 5 times more likely to experience another.
What can a payment default do?
Registering a default on our bad debt register will prompt a slow or non-paying customer to pay their outstanding debts out of fear of ruining their credit file and deterring other suppliers.
Even warning a debtor that you will lodge a payment default against them can be enough to get paid faster.
Learn how a Western Australian wholesaler recovered their debts in this case study.
Common Questions About Payment Defaults
You need to provide a commercial invoice or a final demand notice. Court documents are not accepted.
You can register a payment default for any overdue payment. There isn't a minimum amount of days it needs to be overdue.
Once paid, a default will be marked as settled but will still remain on a credit report for up to five years.