CreditorWatch has launched a practical guide to help subcontractors and suppliers reduce their risk exposure to credit risk and get paid faster.

The Build Smart: A guide to managing credit risk for subcontractors & suppliers outlines actionable steps businesses can take to protect themselves from non-payment, improve cash flow and avoid financial loss when working with builders and developers.

CreditorWatch data reveals that construction businesses are some of the worst performers nationally across several critical indicators of business stress, including insolvency rates, payment defaults and overdue tax debts. The sector’s business closure rate remains well above the national average, sitting at 5.75% as of June 2025.

CreditorWatch chief executive Patrick Coghlan says that the construction industry’s subcontractors and suppliers are too often left holding the bag when a builder runs into financial trouble.

“This guide is designed to give these businesses the tools to identify red flags early, enforce stronger terms and build greater resilience into their operations,” he says.

The guide covers five key stages, including onboarding, monitoring, collections, reputation and insolvency response. It also outlines how to use tools like CreditorWatch’s RiskScore, PPSR integration and payment defaults reporting to avoid costly mistakes and make smarter credit decisions.

“The construction sector is high-risk by nature, but credit risk doesn’t have to be a blind spot,” Patrick says.

“By taking a proactive approach to onboarding, monitoring and collections, subcontractors and suppliers can significantly reduce their vulnerability and improve their bottom line.”