Industry Capability Network (ICN) has launched a new tool aimed at helping small and medium companies understand their own financial viability, using VedaScore, provided by data analytics company Veda.
According to data from MarketInvoice, Australian small businesses are the world’s slowest at paying outstanding invoices, which in turn is compromising their competitiveness and survival. This is why ICN is giving companies opportunity to access data they may be completely unaware is in the public domain.
‘We know the Federal Government is concerned about businesses’ cash flow, which was outlined in the Federal Government’s Department of Innovation discussion paper released in 2013, showing that late payments added financial and administrative costs, reduced the potential for investment opportunities, damaged business relationships and fuelled business uncertainty’, ICN Limited Executive Director Derek Lark said.
‘Unfortunately, as the MarketInvoice 2016 data shows, Australian businesses are still lagging. So as the leader in finding businesses with the right capability to win major projects here and overseas, ICN is well-placed to also help Australian small and medium enterprises understand their credit position. This new avenue means that not only are we able to offer independent validation of technical expertise, but now also moving into viability.
From 23 March 2016 new subscribers to ICN Gateway (that hold a current ACN and Veda has sufficient data on) will be able to download their VedaScore to give them a better understanding of their credit rating.
VedaScore sums up a company’s credit file in a number between 0 and 1200, calculated against the average for all companies in the country.
This score is collected from such things as payment information, public filings (for example ASIC), court judgments, payment defaults, collections, and other information.
Veda offers real-time data, which means it is a snapshot in time for the company to see where they are at, and importantly, what company’s potential partners, suppliers and lenders are seeing.
‘Most small or medium businesses don’t even know they have a credit rating, but a good credit rating gives them confidence when tendering for major projects, because you can be certain the large project owners will be undertaking due diligence on all potential subcontractors,’ Derek said.
‘Not only that, a good rating can help get business finance at a low interest rate, plus favourable payment terms from suppliers.’
All new paid ICN Gateway subscribers will be able to access the VedaScore at no extra cost which is worth an extra $65.
‘Future financial viability features include companies being able to purchase an updated credit score whenever they ask for it, and all continuing subscribers receiving an updated credit score automatically 12 months after the initial report is generated.’
‘With paid ICN subscriptions starting at $156 a year for our ‘Be Seen’ package, this represents great added value for small and medium business looking to win tenders for big and small projects.’
Karen Lenton – 02 6285 2033