Capitalise boosts functionality with credit risk tool

Released today, Credit Risk Manager is a tool that allows accountants and their clients to track the credit scores and financial health of their customers and suppliers.

The new feature expands on Capitalise’s existing credit report capabilities and combines with the platform’s original function: to allow accountants and their SME clients access to capital from mainstream and alternative finance providers.

Credit Risk Manager pulls in ledger details such as invoices via integrations with QuickBooks Online, Xero and Sage, and combines this with credit monitoring services provided via a partnership with Experian.

The tool displays business data such as credit score, credit limit, any outstanding invoices (and their amount), how they’re paying customers, and other relevant information such as a weakening credit profile or new County Court Judgments (CCJs).

Capitalise

Once a user’s cloud accounting package is connected and the relevant businesses added, the platform will periodically synchronise the latest invoice data or this can be triggered manually at the top of the screen. This allows accountants to keep track of debtor book risks and monitor other emerging risks that might result in late payments or bad debts.

Credit Risk Manager also offers real-time alerts when a company profile changes, allowing users to identify cashflow risks and react quickly – for example by adjusting its exposure to the customer or supplier..

The tool allows user to focus their debt collection efforts by offering a single place to view invoice and credit risk information, allowing them to them prioritise higher-risk companies with larger debts.

Capitalise

Capitalise now offers a suite of services including funding, credit score, credit risk monitoring, and credit score improvement, competing with the likes of Creditsafe for depth of information and cash management solution Satago on cloud accounting integrations.

Speaking to AccountingWEB, Capitalise co-founder Ollie Maitland said that with business insolvency rates high and bad debts increasing, the vendor’s move comes at the right time.

“Over the past few years we’ve seen accountants getting more work helping businesses see and improve their credit score,” said Maitland. “But with late payments on the rise, which can ultimately become bad debt, more businesses want to keep track of their customer and suppliers’ financial health.

“With the recent case of Wilkos going into administration, the credit agency categorised them as a risk six months beforehand, and their early visibility will have been a commercial advantage to companies in the supply chain. Keeping track of customers is crucial to get ahead and understand where the risks are.”

Credit Risk Manager is available as part of Capitalise’s existing range of packages. For more information visit Capitalise’s pricing page for accountant partners.