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CheckVault.com.au launches to put a stop to $7 billion Aussie business cash-flow crisis



New independent escrow service CheckVault.com.au has officially launched today to help put a stop to the staggering 7 billion dollars that Australian businesses have lost in the last year largely due to poor cash-flow management.

This analysis of the latest industry insolvency statistics[1] shows that almost 9,500 Australian businesses have become insolvent in the past year alone, with nearly a quarter of these (2,153 or 23 per cent) seen in the construction industry the largest sector to be affected, contributing an average loss of 1.6 billion dollars.

Aiming to put a stop to cash-flow problems and help alleviate the situation, Sydney based start-up CheckVault is a free and secure payment service that offers peace of mind by taking financial risk out of the equation whether you are buying or selling.  The service has launched across Australia following a two-year beta test stage that has seen a 100% success rate across customers and businesses.

By acting as an independent third party, CheckVault securely holds the funds for a job via an escrow arrangement with ANZ Bank and Perpetual Corporate Trust until the work is complete.  Customers can then simply release funds directly to the supplier in just a few clicks once both parties are satisfied.

Co-Founder Kieran Martin comments, “As the figures highlight, there is a clear issue with facilitating payments across SMEs and CheckVault is the solution that benefits everyone.  Now not only can the supplier get on with a job safe in the knowledge that funds have already been held for them, but customers can even take advantage of the knock-on competitive pricing that this security provides.  It’s a win-win for both parties.

Martin, a former Chartered Accountant, launched the service after seeing first hand the effects that late payments had on many of his client’s businesses.  Spurred on by experience from close friend Nick Ogilvie, now a Business Development Manger for the company, Kieran started CheckVault to provide a safe, simple and secure way for customers and businesses to reduce the risks associated with transactions.

The Block winner and CheckVault spokesperson Dale Vine, who most recently returned to the show as part of the 2014 Block Fans vs Faves series also commented on the launch of the service, “I’ve been lucky enough not to get burnt in the past but I know plenty of friends in the industry that have, and the effects can be devastating.

“You’ve got to remember that it’s not just a tradie that you’re affecting with late payments, but also their entire family.  We’ve all got mouths to feed so it’s great that a service like CheckVault can take the hassle out of quoting and job security – and best of all, do so free of charge for both parties.  I’ve started to use it as it’s a no brainer,” added Dale.

Dale Vine and further case study businesses are available for comment

ENDS

About CheckVault

Founded in 2012, CheckVault is Australia’s first free secure escrow service providing peace of mind to both consumers and businesses.

Once a quote for a job is submitted, payments are secured and the funds are held safely in the CheckVault until the work is complete, to be released only when both parties are satisfied.  When payment risk is taken out of a job, both parties win.

CheckVault holds the funds via an escrow arrangement with ANZ Bank and Perpetual Corporate Trust and is available to consumers and businesses across Australia. 

This advice is general in nature and does not take individual circumstances into account.  For more information visit checkvault.com.au and consider the terms and conditions


[1]According to ASIC Insolvency statistics July 2013 – June 2014 (Table 3.1.5.1)