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CreditorWatch

CreditorWatch is an Australian commercial credit reporting bureau. It keeps credit files on companies and other ABN holders, built from payment defaults lodged by suppliers, court actions, ATO tax debt default data, insolvency notices, credit enquiries and trade payment behaviour, and turns them into a business credit score called RiskScore. Lenders check it alongside a business credit report from other bureaus and the directors’ personal credit files.

Quick answer: CreditorWatch RiskScore runs from 0 to 850, with 14 ratings from A1 to F. The higher the score, the lower the risk, and an F rating means the business has a default. On our lender panel, some unsecured lenders decline a business credit score below about 475 or a director score below about 500, though the scale and cut-off differ by lender and bureau. A default or court action does not rule out every lender, but it needs an explanation and usually narrows the options.

What is on a CreditorWatch file

  • Payment defaults lodged by suppliers and other creditors
  • Court actions and judgments from Australian courts
  • ATO tax debt default data, where the ATO has reported an overdue business tax debt (see the ATO intent to disclose notice)
  • High-risk ASIC documents, insolvency notices and director history
  • Credit enquiries, and trade payment behaviour from businesses that share their ledgers

How business lenders use it

Non-bank lenders pull a commercial bureau file at assessment, and many automate a first cut on the score. What they look for beyond the number is the story: when a default was lodged, whether it has been paid, and whether a court action is still open. A recent unpaid default or an open action is harder to place than an old, paid one. If the file is the problem, a broker can match it to lenders that assess bad credit business loans rather than declining on the score.

How to check and fix your CreditorWatch file

CreditorWatch sells reports and subscriptions on any business, including your own. If a default is wrong, raise it with the creditor that lodged it and with CreditorWatch. If it is right, paying it and getting it updated as paid helps more than leaving it open. Our business credit report guide covers what each bureau holds and how to check them.

Related Switchboard Resources

Official info: creditorwatch.com.au

What is a good CreditorWatch score?
The higher the score on the 0 to 850 scale, the lower the risk CreditorWatch sees. Ratings run from A1, the strongest, down to F, which means a default. Lenders set their own cut-offs, so a broker can tell you which lenders fit your score.
Does a CreditorWatch default stop me getting a business loan?
Not always. It narrows the lenders and usually raises the price. A paid, older default with a clear explanation is far easier to place than a recent unpaid one.
Is CreditorWatch the same as my personal credit score?
No. CreditorWatch scores the business. Lenders also check each director’s personal credit file with a consumer bureau such as Equifax, Experian or illion.