A change in a customer’s payment behaviour can be quite telling. Perhaps they have missed a payment, or you are noticing that payments that were normally timely seem to be lagging behind. When a customer’s habits do change it’s normal to have some concerns about being paid.
It’s important to have some systems in place to help prevent instances like this, or at the very least alert you to any changes and potential problems arising.
More importantly, by keeping an eye on changes in payment behaviour you have the opportunity to take action sooner rather than later.
Running a portfolio health check on your current customer base is as equally important as running a credit check on a potential new customer as part of your onboarding process.
Doing so will help you to identify any changes in your customer’s credit score or financial position such as missed payments, declining credit scores or hardship indicators.
What’s more, you can also set up tailored alerts for your customers to monitor changes as they happen, helping you to take action and mitigate any risk.
Adding credit checks to your workflow could really help reduce any issues down the line and also keeps helps you to be better informed to make good business decisions.
Running a credit check on a customer will help you determine their habits, not only if they have the ability to pay, but pay on time. Being able to make decisions upfront about a customer will help your business to run more smoothly.
If you’re supplying goods and services, or loan facilities to others, you want to be assured that they can pay you back. Our reporting can help mitigate risk as you’ll have their credit behaviour information at your fingertips.
Our online system allows you to access credit information 24/7 and because it is updated daily, you can be immediately aware of any changes in payment behaviour (their risk profile) of the businesses you are dealing with when a check is performed.
Are your goods and assets secured? The PPSR could be a good option for you to reduce your risk.
PPSR stands for Personal Property Securities Register and is an online service account where you can register a legal claim to your personal property.
The register helps businesses and individuals protect themselves financially, reduce investment risk, gain access to credit, and make better-informed financial and purchasing decisions.
If you’re selling goods on credit, you’ve probably signed a contract establishing your rights to the property should the customer fail to pay. But what if there are other creditors waiting in line?
Registration puts you in a better position to recover goods, or their value, should a customer default, giving you priority over creditors who’ve not registered an interest, and those who register after you. Almost anything of value – excluding land, buildings and ships greater than 24 metres in length – can be used to secure the repayment of a debt.
You are in the best possible position to recover goods supplied to your customer or claim the monetary value, should your customer default.
Are given priority over creditors who’ve not registered an interest, and those who register after you.
If the customer has assets of value in the event of insolvency, you may be first in line to claim the distribution of funds from the sale of assets.
Limit the risk of being affected by preferential payment clawback.
Our team can save you time and money by registering your goods and assets on the PPSR on your behalf. Talk to us today for more information. You may also find our blog ‘Reducing your risk as a supplier’ a helpful read.
These are just a couple of things you can implement within your business.
If you are noticing changes in a customer’s payment behaviour, we can help. Let’s chat through your options in more detail.
Fill in your details and your Business Support Specialist will be in touch within the day to arrange a suitable time to catch up.