Overview
This article provides guidance on registering payment defaults with CreditorWatch. It covers:
Why registering a payment default is important
The requirements for registering a payment default
Supporting documentation you’ll need to provide
Common reasons payment defaults may be rejected
Why Register a Payment Default?
By registering a payment default, you:
Alert other businesses to the debtor’s non-payment, reducing their risk of extending credit.
Motivate the debtor to pay the outstanding amount, as it negatively impacts their business credit file.
Default Registration Requirements
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)
Debt must relate to a commercial entity with an active ABN or ACN.
Amount must be over $100.
Debt must not be in dispute.
Making Reasonable Efforts to Collect
Before registering a default, we recommend making reasonable attempts to recover the overdue debt. This may include:
Sending reminders or final notices
Confirming that communication was sent to the correct email address, mailing address, or phone number, and addressed to the right contact
Required Supporting Documentation
You must provide supporting documentation proving the debt exists and invoices were issued to the business.
Accepted documents include:
Copy of unpaid invoice (with due date clearly stated)
Collection letters such as Letter of Demand or Final Notice
Account Statement (with due date clearly stated)
All submissions and supporting documentation are reviewed when lodged.
If documentation does not meet requirements, the default will not be registered. You will receive an email with the rejection reason.
Any falsified documentation will be reported.
How to Register a Payment Default
Registering via the Payment Default section of the debtor's credit report
Login to your CreditorWatch account.
Search for the debtor using the dashboard search bar.
Open the business credit file, go to the Risk Data section, and click Register a Default.
Enter the required information (invoice date, due date, amount).
Upload supporting documentation (invoice, letter of demand, statement, etc.).
Click Register Default.
Registering a Payment Default via Debtor Management
When a CreditorWatch member connects their accounting platform to Debtor Management, overdue invoices that meet eligibility criteria are automatically identified. This streamlines the process of registering payment defaults.
Go to the Debtor Management dashboard.
Debtor Management automatically lists overdue invoices that may be eligible for a payment default.
Review invoices that meet eligibility criteria.
Invoices are flagged as eligible when they meet all of the following:The invoice amount is $100 or more
At least 45 days overdue
Not in dispute
The due date is within the last four years
Select the debtor and invoice(s). Choose:
A single invoice, or
Multiple invoices when registering based on a statement
Review auto-populated details. Debtor Management automatically fills in:
Invoice number
Amount
Due date
Required supporting evidence (for example, demand letters or reminders)
This reduces uncertainty about what evidence is required to support the payment default.
Confirm eligibility and dispute status. Review prompts or tooltips that guide you on:
Required information
Formatting rules
Compliance considerations
Register the payment default.
Click Register Default or Submit to complete the process.
Payment defaults are registered per invoice and remain on the debtor’s credit file for five years, unless removed by the listing entity.
Optional: Monitor the debtor.
During registration, you may be prompted to add the debtor to your monitoring list to track future changes.
Registering a Payment Default from the Actions Dropdown in a Credit Report
Registering a payment default from the Actions dropdown is the fastest option when you are already reviewing a Credit Report.
Why use the Actions dropdown?
You can register a payment default without navigating away from the Credit Report
It supports faster decision-making while assessing risk
It is the most direct and intuitive option available
Common Rejection Reasons
To avoid rejections, check for these issues:
Date errors:
Using invoice date instead of due date
Outdated due date on documents
Missing due date or payment terms
ABN errors:
Missing or unclear ABN
Entity confusion with consumer debt
Document type errors:
Only invoices, statements, or final demand letters are accepted
Court documents, statements of claim, and payment schedules are not accepted
File upload errors:
Only one file can be uploaded per default
If multiple files are required, merge them into a single PDF before uploading
Need Additional Help?
If you need further assistance, please contact our Support Team here.