CreditorWatch Data Debt Collection DebtorLogic Risk Management
4 mins read

DebtorLogic: frequently asked questions

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Staying on top of the financial health of your client base is crucial to ensuring your business maintains a healthy cash flow. However, you may not have the time or resources to perform constant monitoring, or high level credit risk analysis, concerning the payment trends and terms of your clients. Thankfully, with the right debtor management tools in your belt, such as CreditorWatch’s DebtorLogic platform, you’ll be able to better protect your business from late payments and bad debt, and prioritise collections.

What is DebtorLogic?

DebtorLogic is CreditorWatch’s interactive debtor management platform, which allows you to analyse your aged trial balance, as well as identify payment trends and warning signs of credit risk across the market. Our exclusive trade payment data showcases how a market is being paid, and allows you to compare the industry average, so you may better avoid slow paying businesses.

You can then apply our Risk Score and Payment Rating analysis– unique debtor management tools to CreditorWatch – to all of your customers, so that you can review how they are paying other suppliers, and their credit risk level to your business.

  • Payment Rating assesses your customers by ranking them from A to E, according to their payment history over the past 12 months. This is determined by measuring the time your clients take to pay their suppliers, allowing you greater transparency of their payment behaviour.
  • RiskScore grades the likelihood that your customers could default in the next 12 months, through a numerical credit score between 0-850. The higher the score, the less risk the entity may pose to your business.

Through these helpful tools, DebtorLogic helps you to better respond to changing payment trends, stay on top of payment terms, and prioritise your collections.

How can DebtorLogic help your credit management process?

Using comprehensive CreditorWatch data pulled from a variety of sources, you will discover how your customers are paying you in comparison to the rest of the market. This offers greater transparency detailing if their poor payment behaviour is occurring just to you, or if the client is showing deteriorating payment behaviour to all their suppliers.

In turn, understanding the warning signs of risky clients before you’re facing bad debt and poor cash flow should assist you in making high-level management decisions. Leveraging the ability to view your debtors’ credit profiles, likelihood of default and the riskiest debtors means that you can prioritise collections and keep a close eye on high-risk customers. You may also like to adjust their payment terms, such as asking for a deposit or payment upfront rather than extending normal credit terms. This may help keep your cash flow healthy and ideally prevent you from carrying debts for an extended period of time.

Will DebtorLogic alert me if something changes?

Yes, DebtorLogic offers customers real-time alerts when your client’s payment behaviour begins to show warning signs of deterioration. You’ll also be notified when adverse information is recorded, such as ABN/CAN changes, winding up notices, mercantile enquiries, court actions, cross directorship, and changes to risk scores.

CreditorWatch provides your business with the security of knowing your customer’s payment behaviour is being monitored 24/7. Any payment behaviour and signs of credit risk that you need to know about will be sent to you immediately, so you can swiftly take action.  

How do I use DebtorLogic?

DebtorLogic seamlessly integrates into your CreditorWatch dashboard. You simply need to upload your aged trial balance into the system, and it will do the rest.

With this information, you’ll then be able to run analysis on payment trends, run reports comparing your customers’ payment behaviour across industries and states, all with easy-to-read graphs and tables. You’ll then be able to view your entire database’s credit profiles, likelihood of default, and easily identify the riskiest debtors, allowing you to prioritise collections where needed.

How is DebtorLogic different from other analysis tools?

DebtorLogic is the only trade payment program that combines both small business and corporate trade data, providing you with a more accurate understanding of how a market gets paid, and how your clients compare.

Benefits of DebtorLogic for credit management:

  • Better understand client base – Assess client creditworthiness and adjust payment terms, if needed.
  • Mitigate credit risk – Identify high-risk debtors, including information on outstanding balances, payment scores and risk scores.
  • 24/7 monitoring and alerts – Receive alerts about increasing credit risk of your clients.
  • Get paid faster – Utilise this data to prioritise collections, reduce days sales outstanding (DSO), and boost the collection rate of your portfolio.

To get a free trial of the CreditorWatch platform, including DebtorLogic, contact us today and let our team of experts help reduce credit risk to your business.

DebtorLogic Products risk management
LUCINDA-JUDD
Trade Consultant
Lucinda joined CreditorWatch in 2019 and is a Trade Consultant. She specialises in CreditorWatch’s ATB-analysis trade program, DebtorLogic. Lucinda helps small to large businesses streamline their credit management and collections processes to proactively mitigate their debtor risk. She’s passionate about offering CreditorWatch’s data insights to strengthen her clients’ existing practices and to reduce the risk caused by late payment behaviour.
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