Bad Credit Decisions
Definition
Paper-based credit applications result in illegible data and missing info, impairing accurate risk assessment. Failure to verify ABN/legal entity exposes to disputes and write-offs.
Key Findings
- Financial Impact: 1-3% revenue as bad debt; AUD 5,000+ per disputed claim without indemnity clauses
- Frequency: Per faulty approval (5-10% of applications)
- Root Cause: Paper forms with handwriting issues and lack of automated ABN/credit validation
Why This Matters
The Pitch: Wholesale firms in Australia 🇦🇺 lose 1-3% revenue to bad debt from faulty credit approvals. Automation of form validation and checks prevents this.
Affected Stakeholders
Credit Controllers, Financial Controllers
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Customer Churn from Friction
Credit Approval Delays
Late Payment Penalties Forgone
Paper Invoice Processing Delays
Delayed GST Tax Invoices
AR Ledger Errors
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