How Does This Affect My Business If My Creditor Does Not Take Further Action?

Depending on the type of business you operate, it is common practice for your suppliers to be registered with a credit bureau such as Veda/Equifax to receive automated email alerts whenever Judgment/Payment Default is listed against one if its customers it supplies credit to.

  • Suppliers
    Your supplier may have contact you questioning you about the Judgment debt. Many suppliers change the trading terms to C.O.D until the Judgment has been removed, or cancel your account immediately.

  • Fuel cards
    If your business has a fuel card account, your account will most likely be immediately suspended until the Judgment has been removed from your credit file.

  • Obtaining Finance
    If you are obtaining finance with one of the big four banks, you may find that your credit score is so low due to the “black mark” this Judgment has put on your credit file, that you now fail to meet the banks lending criteria. This will force you to increase your deposit substantially, or source a loan from a second or third tier lender at a much higher interest rate than that offered by the banks. Typically the rate is double or even triple the rate charged by the banks adding additional pressure to loan repayments.

  • Building License
    If you hold a building license, you will most likely be contacted by your broker