As COVID cases grow by the day, nationwide restrictions are increasing, with lockdowns being extended indefinitely. The latest lockdowns are having a debilitating impact on businesses, especially in Greater Sydney. As more states and regions enter lockdown with little to no warning, more businesses are experiencing uncertain trading conditions and cashflow problems.

Businesses need to protect themselves as much as possible in this volatile climate. To manage increasing uncertainties, CreditorWatch’s DebtorLogic tool is helping businesses take a proactive approach to debtor management and stay ahead of exposure to bad debts. If you’re currently using DebtorLogic, it’s crucial that you’re regularly updating your aged trial balance (ATB) data, in order to optimise your risk management and get the most accurate understanding of what your debtors are doing, particularly at times of uncertainty like lockdowns.

Update your ATB data frequently

How have your customers been affected by the lockdowns? Who is at highest risk of default? Could they be using you as a bank while they pay other creditors first?

DebtorLogic is particularly beneficial right now as it helps businesses stay ahead of potentially risky customers when it comes to commercial credit. It analyses your aged trial balance report which contains valuable insights that can help you identify your worst-paying customers and reveal your payment times compared to the rest of the market.

By uploading your ATB data weekly or fortnightly, you unlock real-time insights on your debtors. Frequent updates produce richer information, optimising the results of your ATB analysis. When a debtor has adverse risk or cashflow issues, the key is to act as quickly as possible with informed decision making. With regularly updated data, you will be able to see new risks and latest changes in your collections, and take prompt action like prioritising accounts for debt collections.

DebtorLogic provides valuable insights to manage uncertainty

Leveraging CreditorWatch’s exclusive data sources, DebtorLogic combines both small business and corporate trade data, providing an accurate picture of how a market gets paid. Implementing DebtorLogic helps businesses mitigate credit risk with additional information to help them assess payment behaviour and avoid bad debt. Using ATB data, it helps you determine how likely your debtors are to pay or default, highlighting the riskiest debtors in your ledger so you can act quickly and follow up with them.

DebtorLogic helps credit teams to:

• Identify high-risk debtors by determining who pays you and the market late
• Prioritise collections, adjust payment terms and manage expectations of customers
• Assess creditworthiness based on payment behaviour, trends and market insights
• Reduce days sales outstanding (DSO) and improve the overall collection rate of your portfolio
• Reveal adverse and high-risk information including outstanding balances
• View payment and risk scores on all entities to gain a deeper analysis of your debtors
• Get alerted to the latest changes in your customer base.

DebtorLogic helps CreditorWatch customers stay ahead of bad debt and get paid faster during these difficult times. To maximise protection, it is important to regularly update your ATB data so that you can get alerted to changes real-time and take more timely actions. If you’d like to learn more about whether DebtorLogic is suitable for your business, check out this webinar or get in touch with me at lucinda.judd@creditorwatch.com.au.