Simplify Debtor Management and Improve Cash Flow

Reading Time: 3 minutes

Reveal risky debtors with a complimentary ATB analysis

As we edge closer to 2021, Australian businesses remain on a concerning trajectory of late payment behaviour. The average amount of days payments were overdue in September 2020 was 222% higher than September 2019. In the Financial and Insurance Services sectors, businesses reported a 520% increase in payment times compared to the same time last year.

DebtorLogic helps businesses get debtors to pay faster and improves cash flow by taking a proactive approach to debtor management. It provides a data-driven analysis of your aged trial balances (ATB) to help you better understand what sort of risk a customer represents to your business.

How can debtor management be improved? Identify the early warning signs

DebtorLogic shows you how your customers are paying you in comparison to the market. If a customer is paying you late but others on time, they may be deliberately withholding payments or using you as a bank. If a customer is paying you on time but has stopped paying other suppliers, this is also a red flag.

Deteriorating payment behaviour is a warning sign that a debtor is in financial difficulty and could be at risk of payment default, court action or insolvency. With government subsidies masking these warning signs, keeping on top of trade payment data is vital.

CreditorWatch has an extensive database of corporate and SME data – the best and worst paid companies – to provide the clearest picture with live updates of how the market is really getting paid. Unlike most complicated trade programs, our interactive user interface presents easy-to-read graphs enabling you to identify trends and predict payment behaviour.

How to get debtors to pay faster

Traditional debt collection seeks to collect the most outstanding amount first, but this can be a slow and frustrating process. Our algorithm prioritises the most collectable debts to improve your cash flow and reduce your DSO. DebtorLogic uses market and industry insights to identify where your biggest opportunities are and where revenue is at risk. This data is essential for more effective debtor management.

This enables you to respond to changing payment trends, review adverse information in conjunction with outstanding balances, adjust payment terms and manage expectations to encourage debtors to pay on time.

Get a free ATB analysis to improve your debtor management

To ensure you’re across the risks and opportunities within your ledger, I’m offering an introduction to DebtorLogic with complimentary ATB analysis.

An ATB analysis helps you understand who your best and worst customers are with state and industry information. It will also reveal the following:

  • Debtors who are paying you late but others on time and vice-versa
  • Debtors with adverse risk or cash flow issues
  • Collection priority based on data and market insights
  • Historical payment behaviour and trends

An ATB analysis reveals 5-15% of adverse data that you’re currently unaware of. I will guide you through a summary of your ATB findings in a management report – no commitment required.

Get in touch with me at lucinda.judd@creditorwatch.com.au today to organise your free ATB analysis or ask any questions you may have. I look forward to chatting with you!

Get free ATB analysis

Lucinda Judd

Lucinda is CreditorWatch’s Trade Consultant, focusing on our ATB-analysis trade program, DebtorLogic.

Lucinda helps small to large businesses streamline their credit management and collections processes in order 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 paying behaviour. Get in touch by connecting with Lucinda on LinkedIn or emailing lucinda.judd@creditorwatch.com.au.