CreditorWatch Credit Score
The score is a statistically based score indicating an entity's credit worthiness. The score ultimately ranks entities based on their riskiness and is designed to assist you in making more informed and consistent credit decisions. The score is based between 0 and 850 index points with a higher score considered lower risk while lower scores are deemed to be riskier entities. It should be used in partnership with your internal credit procedures and policies.
Key Contributing Factors
There are 23 factors taken into consideration when generating a credit worthiness score, including but not limited to:
- Information on the entity – Age, structure, type, operating history
- Directors – number of directors and directory history (where available)
- Adverse information (court actions, payment defaults, insolvency notices and mercantile inquiries)
- Industry and industry trading history
- Number of credit enquiries and suppliers monitoring the entity
- Entity changes with ASIC and ABR
CreditorWatch score recommendations
CreditorWatch will provide you with trading recommendations based on the score, for example:
Score between 251 - 450 - High Risk - Entity has a below average creditworthiness score and some adverse information may be present. Trade with caution, monitor closely and consider your payment terms.
Ongoing credit score visibility
When you purchase a credit score it will be live and available to view for three months meaning you can witness changes in a score, as they occur over time.
Historical credit score
You will also be given a historical view of the credit score to see if a customer’s credit rating has moved over the last 12 month. This historical view will enable you to see important trends (positive or negative) associated with the company further enhancing your ability to make accurate decisions and reduce bad debt.
Entities without credit scores
- Public companies
- Government entities
- Non-registered entities
- Self managed super funds
Please contact us for further information on pricing.
Before you take on a new customer and offer them a credit account, you should be doing due diligence on them. Check their credit report for important credit risk indicators (actions and defaults) that may affect their ability to pay your invoices.
How to use credit reports and credit scores