The CreditorWatch RiskScore is a predictive commercial credit risk rating system that assesses a business’s creditworthiness and likelihood of default within the next 12 months.
Using advanced machine learning and multiple unique data sources, RiskScore provides accurate and actionable insights to help you make smarter credit decisions.
RiskScore is segmented across five entity types — each powered by a separate algorithm — ensuring accurate scoring whether you’re analysing a sole trader, public company, or trust.
RiskScore also updates automatically as new data becomes available, ensuring you always have access to the most current credit risk information.
Data Sources
RiskScore draws from three main categories of data to generate a live and comprehensive assessment.
Tradeline Behavioural Data
CreditorWatch collects over nine million monthly tradelines from more than 50,000 members, including both positive and negative repayment behaviour.
This data is sourced from:
Corporate Aged Trial Balance (ATB) uploads
SME payment data from Xero and MYOB integrations
CreditorWatch was the first Australian bureau to integrate directly with Xero and MYOB, enabling members to share real-time payment data — one of the strongest early indicators of future defaults and credit risk.
Business Demographic Risk Data
Machine learning enhances demographic and industry-level data to identify risk patterns and predictors such as:
Geographical clusters showing local economic stress (e.g. unemployment rates, commercial rent costs)
Business name classification using natural language processing to identify high-risk industries
Entity maturity factors including business age, time at current address, entity type, and number of directors
Traditional Credit Risk Drivers
Established credit risk indicators are also factored into the model. These include:
Payment defaults — the most predictive adverse indicator
Court actions from all Australian reporting courts
High-risk ASIC documents, such as strike-off actions and director changes
Mercantile enquiries, signalling potential upcoming legal action
Insolvency notices
Credit enquiries, analysed by industry and date
Director behaviour, including failed or phoenix businesses
Understanding RiskScore Results
RiskScore provides two key indicators for each entity:
Numerical credit score: A number between 0–850. Higher scores indicate lower credit risk.
Credit rating: One of 14 ratings from A1 (very low risk) to F (default), grouped into eight risk levels for easy interpretation.
These scores and ratings appear within each business credit report, offering a clear snapshot of an entity’s financial health and reliability.
CreditorWatch provides affordable account management tools designed to help small and medium-sized businesses manage credit risk and cash flow.
RiskScore makes access to accurate company credit information affordable for businesses of all sizes, from sole traders to large organisations.
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