CreditorWatch is a new service that lets small business expose clients who have not paid invoices on time and monitor current and potential clients credit ratings to avoid bad debt.
This year’s Dynamic Business Credit and Debt Survey found that 73 percent of SMBs had seen an increase in the time taken for client payments to be received in the last six months. Compared to the previous year, the survey also found that 59 percent of SMBs are expecting an increase in the level of bad debt as a percentage of total annual revenue for 2009-2010.
CreditorWatch aims to help small business owners band together to share information about bad debtors, providing information to help eliminate exposure to the ‘bad eggs’ who systematically avoid paying their invoices on time despite continuing to trade as normal.
Registering a default through CreditorWatch while the final step in attempting to recover bad debt before taking legal action is a useful threat to have in your debt collection arsenal, the CreditorWatch website describes the process as follows.
“Registering a default against a business should be the last step in attempting to recover a debt and can be done once it is 30 days overdue. Search for the business, add them to your WatchList and then click on Register a Default. You will need to upload a document (statement, final notice, legal letter) and fill in the required information fields.
“Other CreditorWatch users will be able to view this default and document and any member who has this business on their WatchList will be alerted immediately by email.”
CreditorWatch provides users a license to use the CreditorWatch logo on their statements and final notice letters promoting their membership and encouraging prompt payment.
For more information check out the CreditorWatch website or watch the below video. If you sign up with the promo code ‘dba’ you will get your first two months free.