Accounting software provider Xero has partnered with Australian credit bureau Equifax to help bridge the knowledge gap between small and big business, piloting a new credit risk indicator feature which could help mitigate some of the risks around being paid on time and maintaining a healthy cash flow.
These credit indicator reports allow small business owners to identify the credit risks associated with current and potential business partners such as suppliers, investors or clients.
By punching in a business’ name, street address, postcode, location or ABN, Xero pre-populates the contact information and provides an overview of the company’s credit risk. If a business owner wishes to learn more about a contact’s risk assessment, they can purchase a SwiftCheck from Equifax.
Xero admits it does not exclusively hold this information or share information back with Equifax but are simply providing businesses easier access to Equifax’s credit payment scores.
Xero has some tips on how small business owners can reduce their risk if a client or supplier returns a high credit risk rating. For example, it may be beneficial to request a deposit from a client or agree to a cash settlement upon delivery. This may help to minimise the chance of debt as a result of late payments.
About Xero: Founded in 2006 in New Zealand, Xero is one of the fastest growing software as a service companies globally. It claims to be leading in the New Zealand, Australian, and United Kingdom cloud accounting markets, employing a world-class team of more than 1,400 people in 20 offices across the planet. Forbes identified Xero as the World’s Most Innovative Growth Company in 2014 and 2015.
Small business makes the world go round – it’s the heart of the global economy. Xero want millions of small businesses to thrive through better tools, information and connections. Like all great challenges, we can’t do it by ourselves: we work closely with our customers, partners, and other friends to push innovation forward, turning Xero into the online business platform for the world.