Coghlan says CreditorWatch provides credit management solutions to help businesses mitigate credit risk across the customer lifecycle from onboarding to assessment and collections.

“We provide tools like credit reports and ratings so that a supplier or lender can assess whether the customer is going to pay their bills. And can assist in managing the credit risk over time with credit alerts when the customer’s circumstances change.”

And with insolvencies on the rise to pre-COVID levels and payment defaults surging by a massive 53 per cent year on year according to the CreditorWatch Business Risk Index (BRI), Coghlan suggests there has never been a better time for businesses to invest in data and technology around credit risk.

He says smaller businesses often don’t invest in a service such as CreditorWatch when times are tough because they see it as discretionary spend.

“When times are tough it’s often not a bad idea to follow the lead of big professional organisations and invest in better data and technology because they will help you through.

“It’s important to arm yourself with good quality information about your customers because by dealing with good quality customers, you ensure that your future cashflows are protected,” Coghlan says.

“This improved cashflow, combined with the reduction of bad and doubtful debts, then gives you the ability to invest in and grow your business and trade with greater confidence and certainty.”

Vital tool

Chief executive of online small business loan specialists, Banjo Loans, Guy Callaghan, says CreditorWatch is an integral part of his firm.

Banjo Loans provides lending facilities to small businesses in Australia, which is something the big banks seem to have retreated from as they become more risk averse, says Callaghan.

“The big banks tend to take their time to make a decision and are likely to ask for some sort of security over a small business and a lot of SMEs either can’t offer security or they’re already holding large mortgages on their premises for example,” says Callaghan.

“We are filling a hole that the major banks don’t provide a service to,” Callaghan says

He says CreditorWatch’s data is utilised in “every single loan application that we review and approve”.

“I really like dealing with the CreditorWatch guys because they have a really well-run business and the data they provide is of a really high quality,” Callaghan says.

Callaghan is also a big fan of the company’s regional business report because it provides in-depth insights into what’s happening in different regions around Australia.

Callaghan says those insights are invaluable “because when you look at regional businesses you gotta make micro-macro decisions”.

Banjo Loans have been working with CreditorWatch since they were founded, and the relationship continues to flourish because “we both like the insights we provide each other in regard to what’s happening out there in the market”.

“They’re vital - a key ingredient in everything we do. What also makes CreditorWatch good is we can discuss with them where the opportunities are or ways in which they can sharpen their data.

“They’re just so willing to constantly improve their product - it’s fantastic,” Callaghan says.