In the past, Veda Advantage simply provided a list of information on a debtor when you requested a credit report. It was then left up to you to interpret this information and make a decision on granting credit.

However it was difficult to make good decisions unless you were able to read between the lines so to speak. Credit scoring is designed to help you in this regard by making this analysis on your behalf.

Scores can range from - 330 to + 1000. It has been reported that the average score will be between 500 and 600. A person with a score of more than 700 is considered a good credit risk.

We believe that credit scoring is a positive move as it makes it easier for you to make better credit risk decisions. A copy of a sample credit report using a credit score is available here.

A copy of the full Dominion Post article is available here

A copy of the full NZ Herald article is available here

There has been an increase in the dollars limits for Disputes Tribunal hearings. The limits have been increased from $7,500 to $15,000 for any disputes and from $12,000 to $20,000 for disputes where both parties agree.

We believe this is a positive move because an excuse often used by Slow payers for non payment is that they dispute an account. The Disputes Tribunal remains the easiest and most cost effective method of resolving disputes. This is because lawyers are not involved.

We belive the key to using the Disputes Tribunal successfully is to have your evidence organised in a meaning way and to stick to the facts. Don't let emotions be your downfall.

I you wish to discuss a specific debt please do not hesitate to contact us for advise.

The Office of the Privacy Commissioner has recently announced a review of the Credit Reporting Privacy Code. The New Zealand Herald had a front page article on 16 February 2009 which disccussed the pros and cons of this review.

This was follwed up by the editorial for 17 February 2009 which came down in favor of prositive rather than negative credit reporting.

So how does this affect your business? At Cash Flow Doctors we see this change as an issue that should be approached from two diffrent points of view.

Firstly, it should be easier for you as an SME to obtain credit as a business rather than as an owner.

Secondly when you are obtaining credit reports on prospective debtors you should be able to make better decisions as to weather you should approve credit in the first place and, if you do approve credit, just what sort of limits to apply (see Privacy Compliance for further details).

A copy of the full article is available here

A copy of the editorial is available here

A Dominion Post article dated 9 February 2009 discusses the diffrent ways that a business can manage thier debtors ledger in these economic times. One arguement is that you are a little bit more lenient and the other is that you take no prisioners.

At Cash Flow Doctors we see this as being an issue that should always be taken into consideration and is why we have two diffrent collection options - soft or hard. (see The Cure for further details).

A copy of the full article is available here

A NZ Herald article dated 11 December 2008 touches on the benefits to creditors of listing debtors as defaulters, even for small amounts. "Not paying a small bill, such as a phone bill, can negatively impact a consumer's ability to access credit for up to five years". It is our experience that there has been an increase in frustrated debtors who have tried to have default listings deleted. This tells us that default listings have become an even more effective tool in curing slow payer's disease than what they have in the past.

A copy of the full article is available here

A Herald on Sunday article dated 28 September 2008 reinforces the value of default listing your slow paying debtors. This is a process we do on your behalf at Cash Flow Doctors in the event that our cure is unsuccessful. There are some requirements though - the debtors full name and last known address is required (see Cash Flow Times - Issue 2 Spring 2008 for further details).

A copy of the full article is available here

A recent article in the September 2008 Business North magazine discusses the importance of having good credit management practices in place. Karen Phelps reinforces what we believe the important key principles of a strong credit management policies - Vaccination, Diagnose and Cure.

A copy of the full article is available here