Every credit-active consumer and business in New Zealand has a credit score. Getting a business or consumer credit report from Centrix can help you assess the risk – of your customers, suppliers and your own business.

A credit score is a number between 0 and 1,000 that indicates financial health based on previous payment history. You’re much more likely to be paid by a customer with a high credit score than a low score.

Centrix credit reports include a credit score, as well as detailed information about a company or person’s credit accounts and payment history.

Centrix consumer credit reports include personal information, credit score, and information on any defaults and judgements. They can also include payment history, ID verification, and information about any companies with which the person is affiliated, either as a shareholder or director.

The information in consumer credit reports is collected from multiple sources, including banks, utility companies, debt collection agencies, and creditors’ payment history data. Anyone who supplies goods or services to people on credit and collects payment in arrears can be a creditor, such as utility companies, banks, finance companies, and suppliers of goods and services.

A business credit report summarises a business’s credit activity, which covers a broad range of financial activity. Centrix business credit reports include a company’s payment history, current credit situation, and information about the company, such as registration status and directors’ affiliations.

Business credit reports are created by collecting information on businesses from multiple sources, including the NZ Companies Office, PPSR, debt collection agencies and payment history data from creditors. Anyone who extends credit to a person or business can be a creditor, such as utility companies, banks, credit card companies, and suppliers of goods such as raw materials or transportation services.

Centrix credit reports help you to make more informed business decisions and as a result, manage your cashflow more efficiently.

Click one of the links below – you can purchase a one off business credit report for $49 +gst via credit card – or choose the multiple report option which offers savings by setting up an account.

Centrix business credit reports are confidential, real-time and you’ll have the report emailed to you in minutes.

Note that if you’re wanting to credit check a consumer or sole trader, you will need to set up an account, and get written permission for completing the check.

If your customer, prospective customer, or supplier has a low credit score, this means that they are at a higher risk of defaulting on future payments, i.e. they have previously not paid other suppliers on time, or have a history of defaults. Knowing a customer’s credit score in advance may help you decide how you approach risk management. It’s best practice to ask new customers to sign terms of trade that give you permission to follow a debt collection process. If you decide to do business with a company with a low credit score, you may also be able to negotiate payment terms that require prepayment or cash on delivery. 

You can check your own personal credit report for free. Find out more here: www.centrix.co.nz/my-credit-score

To order your business’s credit report, simply click order a one-off business credit report for $49 +GST each via the button below. Search your business trading name, add credit card details and the report will be emailed to you within minutes. If you think you’ll need more than one credit report a month, click HERE to see discounted multiple report rates.

If you’re a sole trader, you can download a personal credit report

If you’re finding yourself in the situation where your business is not being paid, and therefore are not able to pay your own bills, it’s important that you protect your own business credit score.

If cashflow constraints mean you cannot pay your bills on time, approach those that you owe money to early, and start with negotiating payment terms. The aim is not to default on payments wherever possible.

The next step may be to discuss with your bank/lender about access to additional cashflow, such as an overdraft or temporary lending, to cover the period of time you require to pay your bills until you get paid.

This will protect your business credit score and avoid a default against your business. Read more about how to improve your business score here.

Remember in these uncertain times, your customer with a high credit score is likely to be in the same position as you, chasing debtors and managing their cashflow. Now is a good time to reach out and talk to them about payment options, such as paying in instalments, so that you can both protect your credit scores, meet your payment obligations and increase your chances of coming out on the other side of the Covid-19 wave.

Many businesses are struggling during these uncertain times. In additional to credit checking new customers and suppliers, you can also monitor your existing customers for any changes to their circumstances through regular Portfolio Healthchecks, which can alert you to any issues. For example, a change in 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. All of this data helps inform any decisions you make regarding payment terms or supply of goods. Contact us for more information: sales@centrix.co.nz

Having robust Terms of Trade can save you a lot of money by addressing any potential future issues with new customers, from the outset of your relationship. Not only do clear terms give you an opportunity to set payment terms in your favour, but they can also give you a clear recourse of action, should non-payment occur.
Payment disputes can be avoided if there are clear terms in writing before work is started or goods are supplied. Many businesses supply goods and services based on informal agreements, which are open to misinterpretation and difficult to enforce when things go wrong.
You can find out more here

There are some simple things you can start doing to help you protect your business’s cashflow and make sure you have enough working capital to operate smoothly.
Before extending credit to a customer for a product or service, be sure to conduct a credit check. Consumer credit reports and business credit reports, tailored for the Kiwi market will help you understand a potential customer’s creditworthiness.
Define your payment terms in your initial terms of trade when you engage with customers. When you issue an invoice, ensure that your payment terms are clearly communicated again so there can be no misunderstandings around when payment is due.
You can find out more here

Late or missed payments can negatively impact your business credit score, which other businesses will use to quickly evaluate whether to do business with you.
If for any reason you have a cashflow disruption, you can try to negotiate extended payment terms with suppliers upfront to reduce any impact on your business’s credit score.
You can also talk to your bank or other lender for an overdraft or extension of credit, to help with overheads through periods of uncertainty.