Whereas most sales are always made on credit, determining the clients creditworthy is still difficult. But not anymore, as CreditorWatch is helping businesses in Australia to solve this issue.
Late payments are frustrating to every business owner as a lot of time is wasted chasing and reminding creditors to pay up. More so, this put the business at high risk, as bad debt leads mean loss which affects the health of the company in the long run. For this reason, in 2011 Colin Porter, frustrated with always chasing creditors to pay founded CreditorWatch, with the aim of solving this problem.
CreditorWatch analyses Australia businesses credit reports: review their credit history and identify adverse information including registered defaults, court actions, insolvency notices and or mercantile inquiries. By doing this, the platform identifies creditworthy and high-risk clients which is vital information to the success of any business.
So, are you an Australian business owner? Here are the 5 top CreditorWatch reasons which are a must for your business.
1.Vet clients and suppliers
Every business aims at gaining new clients every business day in order to increase profits and gain a competitive edge. Equally, clients and suppliers seek to successfully transact with your business and they, therefore, promise to honour time; with the former offering to pay fast and the latter offering to deliver goods within a very short period. This is what every business needs, but it can turn into a risk of loss or even closing the business if the promises are not honoured. It’s, therefore, necessary for business managers to correctly vet the customer so as to avoid transacting with dishonest clients. CreditorWatch reports help determine the creditworthiness of clients and supplies thus giving confidence in undertaking business transactions.
2. Learn client credit history
Identifying defaulter is very difficult since they have experience in sweet talking business managers into believing they are trustworthy. For example, some of the most known defaulters borrow money to many financial institutions and end up being bankrupt. Similarly, defrauders borrow and buy good on credit with zero intention of paying, but they make managers believe that they will pay. This often leads to business having too much bad debt and eventually incurring the loss. But with a CreditorWatch report, business managers learn about the client history and are able to decide whether to transact with them or not. This comes handy to Australia businesses, thereby preventing them from lending to defaulters and defrauders.
3. Learn Client payment pattern
Even with creditworthy clients, it’s important to learn their payment pattern as this may affect the business cash flow. Shortage of cash flow may lead to loss since business needs cash to operate. Therefore, it is important that the management plan to know when to expect payments and arrange on alternative sources, such as borrowing in case the business needs money before the date the client is able to pay. CreditorWatch report provides a summary of how the client settled their credit in other businesses, for example, a report would show that a client normally settles credits on day 10. This would enable the manager to find an alternative source of cash in case the business cash before that date. Similarly, businesses that lend to a client on the watch list, prior to joining CreditorWatch, can gain information on whether the client will eventually make a late payment or whether they should write-off debt.
4. Decision-making tool
Running any business involves meeting and communicating new people every day, including knowing who to trust. For this reason, effective decision making is very important, since an incorrect decision would lead to the risk of loss of business. By offering clients credit, CreditorWatch enables managers to gain trust while dealing with new clients as they can make a decision on whether to trust them or not.
5. It’s affordable and quality services to all Australian businesses
By understanding the dire need to determine the client ability to pay credit, Colin Porter, Founder of CreditorWatch, aims that the platform solves these issues to all businesses in Australia. Therefore, CreditWatch quality services at an affordable price. In fact, for only A$34 business owners can access credit report for five clients and similarly $139 per month you can access up to a hundred client reports. The offer is even better with business requiring over a hundred client report since can get a custom discounted report.
What are you waiting for?
For business success, credit reports play a vital role in ensuring the businesses does not offer good and services to a high-risk client. For instance, imagine a scenario where business (B) liquidates owing business (A) a very high amount or not having delivered paid goods. With a CreditorWatch report on business (B), the manager of business (A) would not have lent or transacted with the former.
The monthly charges are low compared to the risk of transacting with clients who are not creditworthy. For the above reason, CreditorWatch is a must have for all Australian business.
At WhichAddOn, we don’t need to help you implement CreditorWatch like we help implement the apps inherent to your daily operations for inventory management and accounting, because it’s easy to use. If you are reading our site, you are likely a wholesaler, importer or dealing with business-to-business transactions and giving credit on a daily basis. Why take the risk when you can mitigate your risk and get an insight into your potentially risky customers before you get too far down the road.
If you do need help with choosing the right apps for your business, don’t hesitate to reach out to us and book a free scope call here or chat to us below.