For financially savvy individuals and businesses, conducting a credit check on a company before you invest your money, time or resources is a must. In the same way you're unlikely to bank with an institution whose credentials are unverified, so too should you conduct a thorough check on prospective business associates.
Before entering into a new business association, it's wise to conduct a credit rating check to establish the financial credibility and stability of the business. Your credit reliability rating is typically a score that lenders and other organisations use to determine whether an individual or business represents a financial risk.
Bankruptcy information in Australia is based on the Bankruptcy Act, regulated by the Insolvency and Trustee Service Australia (ITSA) and the Corporation Act, regulated by the Australian Securities and Investments Commission (ASIC).
Australia has very strict debt collection standards set out by the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC). They were implemented to protect companies and individuals alike.
A debtor is an individual, company, firm or government body that owes debt to a creditor. In an increasingly credit-driven economy, it's important for businesses of all sizes to understand debtor language in order to make savvy decisions - whether they relate to lending money or entering into a new business agreement.
Factoring - also known as invoice factoring and invoice discounting - can provide businesses with a much-needed cash flow boost. Factoring allows your business to raise finance from the unpaid invoices owed to you. Depending on the deal you reach with a factoring company, you can access up to 90 per cent of the invoice value within a day of raising the invoice.
Depending on the product or service they're purchasing, commercial consumers may have an expectation that credit will be extended to them. That's why, for businesses of all sizes, it's essential that they have a decisive credit policy that stipulates how much credit will be extended and under what terms.
In order to establish a prospective new client's or associate's creditworthiness, it's essential that you have a comprehensive credit assessment in place. Whether you're assessing a larger, established corporation or a small new business, there are a number of universally relevant questions you should ask to initiate your credit assessment.