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Credit risk monitoring made easier with new feature

by | Nov 6, 2019 | 0 comments


24 July 2019

  • The new partnership between  ezyCollect and illion is set to help Australian businesses take the guesswork out of payment predictions by giving them instant access to near real-time credit insights on their customers. 

  • ezyCollect is the first Australian accounts receivable platform to include debtors’ near real-time failure risk and late payment risk so that suppliers can act early to protect cashflow.

Despite a 2017 federal government Payment Times Inquiry, late payments continue to be a major risk to the cashflow of Australia’s 2 million small to medium-sized enterprises (SMEs). Business payments can often be up to 14 days late, putting smaller businesses under unfair pressure as their bigger counterparts delay payments. In fact, a 2019 report by cloud accounting software, Xero, revealed that small businesses are burdened with a staggering  $115 billion worth of debt caused by big business late payments.

But help is on hand with an innovative new deal between  accounts receivable and collections platform ezyCollect and data and analytics firm illion. The new partnership is set to help Australian businesses take the guesswork out of payment predictions by offering suppliers the option to see their customers’ credit risk ratings via the ezyCollect dashboard.

The new credit watch service

ezyCollect will give its customers the option to embed illion’s commercial credit scores on their platform, supporting them to identify and react quickly to high-risk customers.

A late payments risk gauge will be available for every trade entity (with an active ABN) managed on the ezyCollect platform, based on regularly updated commercial data and predictive scores from illion. A trading customer will be identified as low, medium or high risk of late payments.

credit watch on ezyCollect
ezyCollect users will have the option to see customer credit risk ratings

A supplier can check their customer’s calculated late payment risk via a gauge on their ezyCollect dashboard

ezyCollect’s CEO Aj Singh says that many suppliers “go in blind” as they onboard a new customer, relying solely on a few hand-picked trade references. “Up to 37  percent of debtors in ezyCollect are ‘new’ to their supplier, in other words, the supplier has not traded with them in the past year. That’s a big blind spot,” said Mr Singh.

Many suppliers “go in blind” when they issue trade credit to new customers.

Aj Singh, CEO ezyCollect

Credit risk insights alleviate some of the doubt about whether a customer will pay on time.

“Businesses should know upfront who they’re trading with,” said Mr Singh.

A radar on the ezyCollect dashboard will give users an immediate visual as they log in, with the option to click through to access more detailed reports and credit risk monitoring services via illion.

“At ezyCollect, we want to put suppliers in the driver’s seat when it comes to protecting and promoting their cashflow. Knowing your customer’s late payment risk before you start trading and as you continue selling to them is key to avoiding bad debt write-offs,” said Mr Singh. “Imagine being the first to know—not the last to know—that your customer is in danger of defaulting,” he said.

“Imagine being the first to know—not the last to know—that your customer is in danger of defaulting.”

Aj Singh, CEO ezyCollect

Around 95 percent of the customers that ezyCollect surveyed responded that they would consider changing their credit terms with customers on the late payments high risk list.

“That’s a great indication that with this quality data at their fingertips, our customers would be adding another safeguard around their cashflow,” said Mr. Singh.

Trusted data and analytics provider illion is on hand for even deeper data. illion’s CEO Simon Bligh said: “If detailed information is required, ezyCollect’s customers can click through to buy a credit report built with the best commercial data and most predictive scores. They can also easily arrange to have entities monitored, or if they have payment issues, can click through to have the debt collected.”

About ezyCollect

ezyCollect is an integrated accounts receivable platform that streamlines the invoice-to-cash process. The platform is designed to get SMEs paid faster, more predictably, and with less effort.

ezyCollect’s purpose is to put smart technology in the hands of ambitious businesses so they have the cash, confidence and information to manifest their dreams.

About illion

illion is the leading independent provider of trusted data and analytics products and services in Australia, with the company’s consumer and commercial registries representing a core element of Australia’s financial infrastructure. 

illion leverages consumer and commercial credit registries, which comprise data on over 24 million individuals and over 2 million commercial entities, to provide end-to-end customer management solutions to clients in the financial services, telecommunications, utilities and government sectors.

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