How to check the financial health of your existing customers

3 March 2023 Posted by: michelle Business News Resources

You might think you know your existing customer base well. But how have they emerged from the past few years of pandemic-led changes? Are they still in good financial shape? Does their credit report raise any red flags suggesting their payment behaviour has deteriorated? Have they got into debt with their own suppliers or other businesses?

Conducting a financial health check up of your entire portfolio of customers is recommended on a quarterly basis for Kiwi businesses in uncertain economic times. Things can change drastically over the space of just a few months or less – we’ve all seen the speed with which Covid19 affected businesses worldwide. Whether it’s the effect of supply chain issues, labour shortages, travel and freight restrictions, extreme weather events, changes to national and international legislation or another of a whole host of economic factors at play – regular financial health checks are an essential tool in today’s business world.

Centrix has developed a quick, easy and cost-effective way to conduct regular checks for NZ businesses.  Our Portfolio Healthcheck service compares your portfolio’s performance against a wide range of key indicators pulled from datasets across multiple industries, including telecommunications and utilities, traditional banking and finance. Providing a top-line view of your entire customer base, you can view customers by segment, see how credit scores are trending and drill down into the data with customised criteria.

A broad view of your portfolio’s performance and your business’s exposure to risk is displayed in a clear and simple format,  . Providing must-have information for any business looking to minimise credit risk and protect their cashflow, you can also have Alerts Monitoring. This is an alert system where significant events like missed payments, new defaults, or director and company status changes trigger an immediate alert. The service is configurable, so you’re alerted only for actionable events. The ability to take immediate action when a worrying situation emerges for a customer or supplier can make a huge difference to the flow-on effect for your business.

Alerts monitoring and the Portfolio Healthcheck services are available for both businesses and consumers. Armed with greater information you can make better business decisions to improve the likelihood of getting paid by each and every customer. Insights provided by the Centrix Portfolio Healthcheck service can be helpful in reviewing your terms of trade and credit limits to reduce your risk.

By applying tailored approaches to your debtors based on their recent credit scores and payment histories you can manage your business risk proactively and strategically. An annual (or quarterly in uncertain times) Portfolio Healthcheck reassures both shareholders and staff that ongoing risks are being consistently monitored to ensure they can be managed effectively.

Find out more about Portfolio Healthcheck and Alerts Monitoring here online or talk to our team at Centrix about an integrated solution on 0800 236 874.