Lodging a Commercial Payment Default
This guide provides best practices on:
Why you should register payment defaults
Steps to register a commercial payment default with CreditorWatch
Supporting documentation required to register a default
Common reasons for default rejections
Why Register a Payment Default?
By registering a default, you:
Alert other businesses to the debtor’s non-payment, reducing their risk of extending further credit.
Motivate the debtor to settle the outstanding debt to avoid negative impacts on their credit file.
Requirements to Register a Payment Default (Effective 1st of May 2025)
Invoices must be related to a commercial entity with an active ABN or ACN
The outstanding amount must be greater than $100
The related invoices must be at least 45 days past due
The related invoices must not be in dispute
A dispute occurs when a debtor has formally objected to the invoice before the default is listed
Acceptable dispute criteria includes:
Incorrect pricing or quantity of goods/services
Discrepancies between the invoice and the purchase order or contract
Late or missing deliveries
Quality concerns with the provided goods or services
Unauthorised charges or additional fees
Payment terms disagreements
Other similar disputes
The invoice due date must be within the last 4 years
Requirements to Register a Payment Default (Before 1st of April 2025)
Debts must relate to a commercial entity with an active ABN or ACN
The overdue amount is over $100
The debt is not currently in dispute
Making Reasonable Efforts to Collect on Overdue Debt
We recommend that you make a reasonable effort to collect the debt. This may include:
Sending reminders or final notices
Ensuring communication was sent to the correct email address, mailing address, phone number, and addressed to the relevant contacts
Required Supporting Documentation to Register a Default
Supporting documentation is required to prove the debt exists and invoices were issued to the relevant business.
CreditorWatch reviews default registrations and supporting documentation upon submission.
Accepted documentation includes:
Copy of unpaid invoice, clearly stating payment due date
Copy of collection letters such as Letter of Demand or Final Notice
Account Statement, clearly stating payment due date
How to Register a Payment Default
1. Log in to your CreditorWatch account
2. Search for the debtor using the search bar on your dashboard
3. Navigate to the Risk Data section of the credit file and click Register a Default
4. Enter the required information (invoice date, due date, amount)
5. Upload the relevant supporting documentation (invoice, letter of demand, statement, final notice etc)
6. Click Register Default
If the documentation provided does not satisfy the requirements, the default will not be registered. An email will be sent to provide a reason for rejection.
Any falsified documentation found will be reported
Common Default Rejection Reasons
To avoid default rejections, ensure you check for the following common issues:
Date:
Incorrect use of the invoice date instead of the payment due date.
Statement lodged with an outdated due date (ensure the most recent due date is used).
Missing due date or payment terms on the document.
ABN:
ABN is missing or unclear, making it difficult to identify the entity the default relates to.
Potential confusion with consumer debt.
Type of Document:
Only acceptable documents: invoice, statement, or final demand letter.
Unacceptable documents: court documents, statements of claim, or payment schedules.
Uploading Multiple Files:
Only one file can be submitted per default.
If multiple files are uploaded, only the first document will be processed.
Merge multiple files into a single PDF before uploading.