Story image

Xero and Equifax piloting tool to help small businesses avoid bad debt

05 May 2017

Xero has announced a pilot with Equifax to make it easier for small businesses to avoid bad debt.

“As any small business owner knows, getting paid on time and maintaining a healthy cash flow are key to the survival of a business,” Xero global product marketing manager Jo Blundell says.

“According to a recent survey, 62% of small businesses don’t think they could survive the next three months if their invoices owing were left unpaid.”

Announced at Xerocon South last year, the cloud accounting company teamed up with Equifax (formerly Veda) to pilot a feature that gives small businesses in New Zealand and Australia access to tools long used by lenders and big businesses to help them make better lending decisions.

Previously only available from separate credit checking services, the feature will let small businesses on Xero see what big companies have always had easier access to.

Banks and other big organisations already use credit reports to check on the credit risk of their potential customers, suppliers and partners.

“Ultimately the credit risk indicator protects small businesses, many of who work on tight cash flow, to check they are using suppliers and partners who have good credit indicators,” Blundell says.

Simple things small businesses can do to ensure they get paid

If a client or supplier happens to show a high trade payment rating, there are a few simple things small businesses can do to ensure they are paid.

They can ask for a deposit, or cash on delivery for potential customers that may be a risk of not paying their invoices or loans.

This will help save businesses from having to write off bad debts or chase down late payers that will ultimately affect their cash flow and ability to do business in the long term.

The pilot is an important step for small businesses to easily access tools which big businesses already use to better understand the people they do business with.

Need the perfect flatmate? AI can help
A Kiwi entrepreneur has developed a flatmate-finding service called Mogeo, which is an algorithm that matches people to the perfect flatmates.
GoCardless to double A/NZ team by end of year
With a successful E round of investment and continuing organic growth globally, the debit network platform company aims to expand its local presence.
NZ’s Maori innovators are on the rise
“More iwi investors need to recognise that these sectors will provide the high-value jobs our children need."
Phone ringing? This biohack wants you to bite down and ChewIt
So your phone’s ringing, but instead of swiping right or pushing a Bluetooth button you bite down on a tiny piece of tech that sits in your mouth.
How big data can revolutionise NZ’s hospitals
Miya Precision is being used across 17 wards and the emergency department at Palmerston North Hospital.
Time's up, tax dodgers: Multinational tech firms may soon pay their dues
Multinational tech and digital services firms may no longer have a free tax pass to operate in New Zealand. 
Spark’s new IoT network reaches 98% of New Zealand
Spark is the first company to confirm the nationwide completion of a Cat-M1 network in New Zealand.
WhatsApp users warned to change voicemail PINs
Attackers are allegedly gaining access to users’ WhatsApp accounts by using the default voicemail PIN to access voice authentication codes.