Why run a credit Healthcheck on your customers?

1 September 2021 Posted by: Sarah Brown Business News Resources
Why run a credit Healthcheck on your customers?

Kiwi businesses have been put to the test since Covid-19 arrived on our shores, seeing revenues fluctuate as the economy changes alert levels, making it difficult to manage cashflow.

To protect your cashflow and make sure you get paid, you can monitor your existing customers for any changes to their circumstances and ability to pay.  For example, a change in a company’s credit score, company status or company directors can be a strong indicator of something going wrong.  

You may also like to know if your customer ends up in payment default with another credit provider, so you can proactively manage your relationships. Early insights will help you to support customers at risk by spotting impending defaults early. 

The Centrix Portfolio Healthcheck service makes monitoring risk easier. It compares your portfolio performance against a wide range of key indicators pulled from datasets across multiple industries, including telecommunications and utilities, traditional banking, and finance. 

You’ll get a broad picture of your portfolio’s performance and risk status in a clear and simple view. You’ll also see a top-line view of your portfolio – segment customers, follow trends in improvement or decline in business credit scores, and drill down by custom criteria. 

Included in the reports is our alert system, an extremely useful indicator triggered by significant events like missed payments, declining credit scores or hardship indicators. This allows you to take immediate action and apply different strategies depending on the type of trigger event. The service is configurable, so you’re alerted only for actionable events. 

Regular Healthchecks

Regular Portfolio Healthchecks help you to understand your clients better. These insights can be helpful for reviewing your terms of trade with each customer as part of a regular review process. Not only can you identify at-risk accounts, but you can identify customers who have improved credit scores and recent payment histories. 

Using this information, you can proactively engage with your customers, setting new credit limits by prioritising and applying relevant strategies to debtors based on their recent credit scores and payment histories.

Informative graphs produced using Portfolio Healthcheck reports can also be used for your financial business reporting, such as annual reports for shareholders. 

Cost-effective risk monitoring

Our Portfolio Healthcheck service provides a cost-effective way to monitor the risk of your existing accounts. The report helps you to understand who you’re lending to – and helps you reduce risk by letting you know immediately if a customer’s credit score or circumstances change.

To find out more visit https://www.centrix.co.nz/get-reports/portfolio-healthcheck