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Commercial credit reporting bureau CreditorWatch has announced the acquisition of an automated receivables management software and collections service provider.
With the acquisition of Debtor Daddy Limited, CreditorWatch can now market the automated receivables solution as “CreditorWatch Collect” in Australia in an effort to streamline payments for businesses.
CreditorWatch Collect can provide customers with:
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- A reduction of manual work through automation of best-practice accounts receivable processes
- Built-in workflow tools designed to organise teams and maintain records
- Access to numerous communication channels to assist with better communication among businesses and customers such as email, SMS and first-party connections
- A more efficient and scalable collections process to help businesses collect more with fewer resources.
This acquisition coincides with businesses becoming increasingly focused on cash flow due to supply chain pressures, rising inflation and interest rates, the high cost of fuel, labour shortages, and current geopolitical conditions creating uncertainty.
According to the CreditorWatch Business Risk Index (BRI), key indicators for insolvencies, such as trade payment defaults, are surging, rising 53 per cent year-on-year. Along with this, the risk of default is expected to rise across the country during the next year.
CreditorWatch warned that over 5,000 businesses could be at risk of default, increasing in all regions across the nation except for the Lower Hunter and Wyong regions in NSW in its September 2022 BRI findings.
While businesses have shown resilience to the Reserve Bank’s cash rate hikes that began in May 2022, the increasing cost of credit is beginning to catch up and economists are anticipating the full effect of interest rate rises to occur.
CreditorWatch chief executive Patrick Coghlan said at the time that B2B trade payment defaults have recently fallen, they remain well above levels seen in September last year during the pandemic, and are an indicator of future defaults.
Commenting on the acquisition, Mr Coghlan said: “The decision to launch CreditorWatch Collect was based on customer demand.
“Right now, cash flow is absolute king, and many Australian businesses are more concerned about cash flow than customer acquisition.
“They need to protect their existing business and ensure they are getting paid to remain profitable and stay in business.
“CreditorWatch’s credit management solutions help businesses strengthen due diligence, mitigate risks and secure their cash flow. We provide exclusive credit risk insights, helping our customers make smarter decisions to protect themselves in this complex economy.”
[RELATED: Business insolvencies feared: CreditorWatch]
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