Bad debts even in the form of a single, large, unpaid invoice
can bring a business to its knees
Not only do bad debts severely compromise a business’s cash flow but they also cause significant stress and anxiety and waste a whole lot of valuable time. The good news is that credit reporting can help prevent these problems.
Ledger Guard can provide COST EFFECTIVE
through the commercial credit reporting agency CreditorWatch.
Our service could save you wasted time and large amounts of money.
5 credit reporting myths busted
Reality: 80% of bad debt comes from customers of twelve months or more.
Reality: Big businesses fail too! And their losses can be monumental.
Reality: No business is too small to guard against bad debt. A basic credit check can cost as little as $40 and can spare you hundreds or thousands of dollars of bad debt.
Reality: Excellent, but do you really think your potential customer is going to put you in touch with creditors whom they’ve failed to pay?
Reality: Correct. Even the best paying customers may experience changes in their circumstances. An effective credit policy is one that continuously reviews customers and alerts you to such changes.
Our reports will identify:
Accessing historical payment behaviour is the best way to assess a customer’s risk of defaulting on future payments.
Credit check before you start working with someone
The most logical time to conduct credit checks is before you extend credit to a new customer. If a new customer has a history of bad debt, request payment upfront or walk away from the risk. However, it is also pertinent to keep a close watch on large account customers, especially if they are about to progress to a greater level of credit. Knowing if they can reasonably manage an increased line of credit will provide reassurance that they can afford to pay you in accordance with your Terms of Trade.
Alert service for account clients
Additionally, Ledger Guard can set up an alert service with CreditorWatch so we can warn you if your client has become a credit risk. Your client’s circumstances can change without your knowledge, but our alert service will enable you to reassess the way you do business — or if you do business — with a client whose behaviour has raised a red flag..
I always get Ledger Guard to do a credit report before I open credit accounts for customers. This has become my primary procedure for managing credit risk. Dealing with Geraldine is helpful and easy with the reports emailed to me the same day.”
Stephen Howland, Director Nutrifoss Australia Pty Ltd.
Credit reports for all new customers and all slow paying customers
You have the right to know you are supplying a customer that has a good credit record. Even valuable customers who pay like clockwork can experience unforeseen financial difficulties.
Credit reporting is your due diligence so that if or when an account issue arises — however small or large — you will be equipped with the information you need to take immediate action.
The other side of credit reporting
An often missed benefit of credit reporting is that as well as identifying who is a bad risk, it also identifies clients with good credit scores. You can create a priority client list to target with more specialised marketing aimed towards increasing their spend, whilst also letting them know they are valued clients.
Contact Ledger Guard today
to order a $40 credit report that could potentially save you thousands of dollars. Email us below or call Larry on 0439 630 722 or 07 3630 2533