Your payment performance history is a strong indicator of how likely you are to meet future financial obligations. Therefore, banks, lenders, suppliers, and partners use your payment history to decide whether to extend credit, offer trade terms, or work with your business.
A consistent history of on-time payments builds trust and confidence, while poor performance can signal financial risk.
What does good payment performance look like?
Good payment performance is characterised by:
Paying invoices and loan instalments on or before the due dates.
Consistently meeting payment terms agreed upon with creditors and suppliers.
Avoiding late payments, partial payments, or defaults.
How is Payment performance tracked?
Payment performance data is collected from multiple sources and reported to Credit Reporting Agencies, who use it to update your business credit profile. These sources include:
Banks and lenders, who report how you manage loans, credit cards, and other financial products
Trade suppliers and vendors, who may share your invoice payment history
Public records, such as liens or judgments, which can also affect your payment profile
This data is used by Credit Reporting Agencies to evaluate your financial behaviour and update your business credit score.