Ask Credit Plus: Answering the Top 4 Business Credit Monitoring Questions

While business credit reports are useful, they are only a snapshot of an ever-evolving picture.

Proactively monitoring business credit performance within your portfolio is key for identifying risks and opportunities. This is truer than ever, given the widespread uncertainty surrounding coronavirus.

Sure, some industries have flourished in spite of the pandemic. However, not all have been that lucky. By being proactive, you can tell which segments have been impacted most (and how) and react accordingly.

How is this done? Let’s answer that and three other common questions below:

“How can I monitor a company?”

Credit Plus empowers you with the ability to keep an eye on specific accounts or your entire portfolio with our Account Monitoring Service.

Relying solely on a one-time business credit report is risky. With our account monitoring service, you’ll proactively be aware of risks (or hidden opportunities) in your portfolio.

Naturally, this brings us to the next question.

“What company changes can I monitor?”

Through our Account Monitoring Service, your company will receive notifications on up to 99 events, including:

  • Late Payments (30, 60, 90-day delinquencies)
  • Bankruptcy alerts
  • Lien, Judgment, & Collection filings
  • Score change alerts
  • Total balance changes
  • Credit utilization changes
  • Small Business Credit Share consortium-based alerts for small business portfolios

Further, you’ll be immediately aware when a customer moves, changes names, or becomes debarred from working with the federal government.

“How will I receive alerts on companies I am monitoring?”

There is a lot of flexibility in alert delivery options.

You can spot opportunities or credit deterioration and other risks (see above) with:

  • Alerts through your CRM/ERP system
  • Right within your Salesforce application
  • Batches of alerts in bulk files delivered in your folder
  • Plus, right within our system

“Which alerts are most effective and worth paying attention to?”

In terms of predicting whether an account will go bad, the best thing to monitor is the derogatory trade payment trigger. You’ll be able to see if and when a business has been paying 61 to 90 days past due.

When such an event happens, it indicates a business has more than a 15 percent chance of going bad in the next three months.

In other words, a derogatory trade payment alert allows your company to avoid being the next late-paid account.

In fact, researchers have found this alert to be very predictive. While it had a lower rate of occurrence, the data shows that when it does, there is a 12.5 percent higher risk of a business going bad.

Fortunately, this is just one of many different events we can help you stay ahead of. Want to help your company minimize the risk of late- and non-payers? Looking for new cross-sell and up-sell opportunities?

Click here to further explore Credit Plus’s Account Monitoring Service or contact your Credit Plus Account Executive today.

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