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Business has never felt riskier. The economic uncertainty delivered by COVID-19 has put question marks over everything business owners once took for granted: happy customers, regular sales, plans for growth. Now, every business needs to safeguard the very foundation of its existence: cash flow.
ezyCollect is proud to announce its latest product, Credit Insights—your daily dose of debtor risk analysis, straight to your dashboard.
Credit Insights is a unique collaboration between ezyCollect and credit reporting bureau, illion (formerly Dun and Bradstreet). Combining the rich data from both services, Credit Insights presents a comprehensive analysis of every debtor on your aged trial balance. Creditors will get aggregated data on the real-time failure risk and late payment risk of every eligible debtor so they can act early to protect cash flow.
ezyCollect’s co-founder, Raj Kuckreja, a chartered accountant, has first-hand experience trying to recover overdue debts from a failing business customer: “If you’re the last to know that a business is failing, you will be the last in line to get paid.
“To avoid bad debts, you need to know who you’re trading with. Then adjust your credit terms and communications based on your customer’s overall financial stability.”
During times of economic uncertainty, you should keep an even closer eye on your debtors so that you keep recovering your cash, advises Raj.
“You can’t mitigate risks to your cash flow without good insight.”Raj Kuckreja
Credit Insights combines a debtor’s ageing invoice data from your accounting software with their trade credit activity across the known market to assign every debtor a low-to-severe risk of causing credit loss to your business.
This is where Credit Insights is designed to shine. The analysis considers how your debtors are trading with you and other businesses. While other debtor monitoring services will give you a generic risk assessment, Credit Insights gets personal.
That’s because credit Insights understands that your unique customer relationships generate payment behaviours that could buck the wider trend. For example, you’ll have customers that are paying you fast, while delaying their payments to others. Alternatively, you’ll want to know when your business is at the tail end of the payment queue.
With insights like this, your business can ask: Are we a preferred supplier to this customer? Which debtors are likely to put our working capital at risk?
Many businesses will strategically pivot their debtor relationships based on credit risk insights. In fact, during ezyCollect’s testing phase for the new product, 95 percent of beta testers said they would consider changing their credit terms with high-risk customers.
Other risk control measures can include closely monitoring bad debt risks and escalating collection calls. As a proactive measure, your sales team can nurture low-risk payers for more business.
“Deeper data is always great, but the challenge is to interpret it in order to make relevant discoveries,” says ezyCollect’s Chief Technical Officer, Ricardo Hori. Business owners and financial controllers can lose a lot of time mining through data to find the gold. That’s why Ricardo and his team specifically designed Credit Insights to be easy to digest.
“I always want more data! But the data we give our customers has to be meaningful. Our customers want to make the best decisions for their business.”Ricardo Hori
“Credit Insights take deep data, analyses it, and presents the assessment back to financial controllers and credit managers in a format that’s easy to understand. We want to empower them to act quickly based on evidence that directly applies to their business.”
The analysis assigns a debtor to a risk management group based on the debtor’s low-to-severe risk level. Financial controllers can quickly see the dollar value at risk in every group. Because the analysis is integrated into the ezyCollect accounts receivable platform, credit controllers get one-click access to activate ezyCollect’s ecosystem of risk reduction services: demand letters, credit reports and live credit alerts.
“The day-to-day job of the credit controller is quite complex, but if they can do all of their major tasks from one hub, their job efficiency and job satisfaction improves,” says Ricardo.
Credit Insights is designed to give business owners and financial controllers greater visibility of credit risks and opportunities so they can take corrective action quickly:
“It’s crucial that businesses stay on top of a rapidly changing trade environment,” says Raj Kuckreja. “There is more risk out there in the market, but there is also opportunity.
“The key is being in the know.”
During COVID-19, businesses can trial ezyCollect’s Credit Insight’s service free for two months. Conditions apply.