How can a payment risk indicator help my business?
Knowing the level of risk associated with companies you do business with, such as how late they pay their invoices, can help you make more informed decisions about who you’re dealing with. If a customer is high risk, you can purchase a SwiftCheck credit report to get a better insight into what payment terms would be most suitable, or ask for deposits or full payment up front. Learn more about credit reporting in this small business guide.
Where is the payment risk indicator information coming from?
The Business Lookup and payment risk information is powered by Equifax. Equifax sources the payment risk indicator information from multiple sources, and takes into account details of any commercial credit defaults and other debts, public record information, court judgements and writs, directorship details and proprietorship details. The multiple sources for the credit risk indicator are the same as Equifax’s commercial credit score – eg. courts, public record information, etc.
Xero does not exclusively hold this information or share information back with Equifax, Xero is simply making it easier for businesses to get access to a business’s credit score.
Why does my business show a high risk score?
A number of factors go into making up a payment risk indicator. If your business has been reported for defaulting on payment of invoices, has any outstanding legal actions or has gone into external administration, then these could increase its risk score. Learn more about what a credit score is and how to improve yours in this small business guide.
What can I do about my business’s high risk score?
To find out what has affected your business’s payment risk indicator, you can purchase a SwiftCheck credit report from Equifax. If you’re still unsure, you can email email@example.com.
I believe there’s something incorrect on my file; how can I fix it?
Firstly, we recommend that you speak to the company who applied the default. You can purchase a SwiftCheck report to see the detailed information held on your credit file.
Only the company who applied the default in the first place can remove it (i.e. the company will get in touch with Equifax as a first step). If you feel that you haven’t got to a resolution and want the matter investigated, it is at this stage that we recommend you contact Equifax. You can email firstname.lastname@example.org. Equifax will investigate your query and assist with any changes if required.
Who is Equifax?
Equifax (previously Veda) has grown from a credit company into a leading provider of insights and knowledge that help businesses make informed decisions. The company provides credit information on more than 91 million businesses worldwide. Learn more about Equifax.