Upcoming Webinar

illion CEO Simon Bligh will be delving into the latest commercial insights and discussing how the best businesses are getting ahead, along with sharing strategies to help you take control of rising risk.

Wed, Aug 12, 2020 11:00 AM -12:00 PM AEST

Most companies across the country are worried about the broader state of the economy and the possible impact on their bottom lines.

While so much of this crisis is out of our control, the companies that take pre-emptive action now will increase their chances of beating volatility.

After all, failing to plan is planning to fail.

Here are our top five tips on the steps you can take now to stay ahead.

1) Be picky with your data inputs

To make meaningful predictions, you should be across the warning signs.

The very first indicator that a business or customer is in trouble is when they delay paying a few of their bills. But importantly, this may not necessarily be your bill.

With that in mind, the COVID-19 crisis has meant it has never been more prudent to keep your finger on the pulse on the broader payment patterns in Australia. By doing so, you can act quickly and successfully navigate these challenging times.

2) Hunt for hidden risk

So even if your debtors are paying you on time right now, they may be exhibiting risky behaviour in the broader market.

This is what we call ‘hidden risk’, and recently, it has increased sharply to 6 per cent of debt.

Your internal collection efforts should be focussed on these customers so make sure you know who they are.

3) Keep your fingers on the pulse

Once you understand the risk within your payments’ portfolio, make sure you monitor for changes.

A daily email alert with early warning signs of increasing risky behaviour can help you understand where your staff should be focusing their time and effort.

4) Expect overdue accounts to double

Business to business/ trade late payments across the entire Australian marketplace have shown the sharpest rise in a decade.

Payment delays have been coming off historic lows of around 10 days (March 2020). Prior to April 2020, trade late payments had been improving steadily since the GFC.

We have been monitoring trade late payments for decades and can confidently call-out major inflection points and the ramifications.

Trade late payments is a telling sign of things to come and we expect to see payments rising to GFC levels in the year ahead – about 25 days late. That means you can expect late payments to double.

5) Embrace technology

Are you making it as easy as possible for your customers to pay?

Digital channels like SMS reminders, are quick, easy and reduce costs incurred from having to remind customers to pay.

Call centres have never been under so much pressure but there are plenty of other ways customers can pay these days. Make sure you are giving your customers a range of options.

About illion

As the leading independent provider of trusted data and analytics products and services in Australia, illion is your perfect partner in these uncertain times. We leverage consumer and commercial credit registries, which comprise data on over 24 million individuals and over 2 million commercial entities, to provide end-to-end customer management solutions to clients in the financial services, telecommunications, utilities and government sectors.

Upcoming Webinar

illion CEO Simon Bligh will be delving into the latest commercial insights and discussing how the best businesses are getting ahead, along with sharing strategies to help you take control of rising risk.

Wed, Aug 12, 2020 11:00 AM -12:00 PM AEST