Debt Collection DebtorLogic
3 mins read

Protecting the health of your ledger in uncertain times

The current market is experiencing uncertainties that have left most businesses in a very different state to where they were pre-COVID. Many are unaware of new and emerging risks in their ledger. In this turbulent environment, it is increasingly important to retain transparency and gain a bird’s eye view of your debtors’ payment behaviour. This allows you to identify slow paying debtors and mitigate risks accordingly. By taking a proactive approach to debtor management, you can protect your business through these unstable times.

Late payments negatively impact the health of your ledger, subsequently affecting your cash flow. Businesses depend on steady cash flow for survival, so it is very important to keep an eye on everything that may affect this. By gaining a clear understanding of which customers are paying you late or failing to pay, you can expedite debt collection or remove them from your ledger to protect your business from bad debt.

CreditorWatch’s debtor management tool, DebtorLogic, allows you to stay on top of your debtors and protect the health of your ledger. It reveals credit risks within your ledger by conducting a data-driven analysis of your aged trial balance (ATB). It enables you to stay ahead of any risky behaviour and uncover warning signs prior to any impact. This means you can prioritise collections and proactively deal with problematic debtors before they can detrimentally impact your cash flow. With smooth cash flow, businesses can run more efficiently and plan for the future. A healthy ledger gives you the opportunity to grow your business and employ more staff, or pay your suppliers early and gain access to early payment opportunities. 

DebtorLogic uses exclusive trade payment data to give you greater transparency on the payment behaviours and trends of your customers. Find out if your debtors are paying their other suppliers on time, and how you’re being paid in comparison to the market. This helps you identify debtors who may be paying you as expected but are not paying their other suppliers on time, which indicates they may be financially struggling. In contrast, if they’re paying other suppliers on time but paying you late, they could be deliberately withholding payments and using you as a bank of sorts. These are warning signs to help you identify high-risk debtors in your ledger.

DebtorLogic empowers you to take a more targeted approach, highlighting the best and worst customers in your ledger. Strengthen the health of your ledger by avoiding slow paying customers and further incentivising those that are paying well. This two-pronged strategy helps you gain control in these uncertain times.

To learn more about protecting your ledger in these unstable times, book a free DebtorLogic demo here.

ledger uncertainties
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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