CreditorWatch, Australia’s leading commercial credit reporting agency, has unveiled its Portfolio Risk Benchmarking Report.
This report offers Australian businesses unparalleled access to credit risk benchmarking insights. The report is available free of charge to commercial lenders, financiers, and businesses with an annual turnover of at least $250 million.
Businesses can access a free Portfolio Risk Benchmarking Report here.
In light of the latest CreditorWatch Business Risk Index report, which has revealed a sharp 30 per cent year-on-year increase in trade payment defaults, businesses are facing a growing need to safeguard their revenue and avoid falling victim to payment defaults.
As such, access to comprehensive information and insights about credit risks has become more critical than ever.
The newly launched Portfolio Risk Benchmarking Report by CreditorWatch provides businesses with a vital tool to help them assess their credit risk exposure and take proactive measures to mitigate potential payment default risks.
By comparing their customer portfolio credit risk against industry benchmarks, businesses can better understand where they stand and identify the steps they need to take to reduce their exposure to risk.
With this report, businesses can gain a competitive edge by making informed decisions about extending credit to their customers, negotiating payment terms, and managing their overall credit risk portfolio.
A Portfolio Risk Benchmarking Report offers businesses several benefits, which include gaining a comprehensive understanding of the creditworthiness of entities within their portfolio by comparing them against the national average, commercial banking portfolios, and alternative finance customers. This report also provides insights into the risk profile of the geographical area in which the business operates and how it compares to other businesses in the same area.
Additionally, businesses receive a business maturity risk profile of their portfolio, which recognises that businesses that are less than five years old have a higher default rate, with peak default rates occurring between years two to three.
Lastly, the report offers a complete business-type segmentation of the business’s portfolio, including information on a private, public, sole trader, and GST registration status, providing a more comprehensive understanding of the credit risk profile of their customers.
CreditorWatch CEO Patrick Coghlan said: “From inflation to interest rates, supply chain problems, labour shortages, and falling consumer demand, Australian businesses are facing tough times.
“Businesses need to take extra measures to ensure they can survive and thrive and it is increasingly important to have proper credit risk management processes in place and monitor the health of your customer portfolio. Portfolio Risk Benchmarking Reports arm businesses with benchmarking analysis and insights to help navigate the storm and come out on top.
“If you’re a business owner looking to gain a competitive edge in challenging times, then make sure you take advantage of this valuable resource today.”
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