Breaking BAD | Big Aged Debt
A day in the life of an Onguard Collections Agent
According to the CICM, the most important report for any credit manager is the Aged Debt report. The bigger and older the debt the bigger the risk. Two companies may have the same past-due % but if Company A is all in 1-30 and company B is all in 90-120 then clearly Company B has a worse position than Company A. According to credit risk agencies, there has been a marked YOY increase in average DBT levels across all industries due to Covid-19 as companies struggle to deal with ‘out-of-office’ AP departments and an increase in delay payment tactics and activities.
With Onguard CreditManager you can set daily dynamic workflow schedules to double down on aged debt starting from the biggest and oldest. You can also dynamically review your insured aged and make risk and limit amendments accordingly through our Policy Manager module which we have co-developed with AON and if all internal attempts to recover debt have failed then our Collector module helps you seamlessly pass debt to external agencies who specialise in this area.
There are many ways to utilise the Onguard Credit Manager module but if ‘Breaking BAD’ is your key focus then a day in the life your collections agent(s) and AR manager might be as follows –
- Create Workflows to support a Breaking BAD collection strategy.
- Set Credit scoring system to support Breaking BAD collection strategy and rules by which customers are moved to different workflows e.g. Low, Med, High risk based on 30/60/90+ aged.
- Access daily, or real-time, updated invoice payment position at company, team, individual level. If Onguard’s MatchMaker (Cash Allocation) module is also employed, then any unallocated cash is removed from the chase view.
- Review new Aged Debt dashboard and shape of debt from the previous day and vs target
- Click AGING Invoices TAB for easy view of BAD accounts by size and aged bucket
- Click schedule of actions that have been created using a pre-determined BAD Dynamic Workflow (as per (1) above.
- Systematically work through automated and manual intervention actions that will directly impact and improve your aged debt position.
- Utilise unique Debtor Cockpit view of each aged account with integrated credit risk reports, payment history and behaviour, aged and DSO position and history, updated credit limits and insured positions, tailored attribute feeds from other systems – ERP, CRM, Other.
- Create automated management reporting templates and schedule the frequency of reporting to senior management.
- Review, Report, Rinse, Repeat.
Onguard Credit Manager is the most intuitive and easy-to-use cash collection tool on the market. Credit Managers and Collections agents are up and running quickly due to the common-sense layout and design of the system meaning our time to value implementation timeline is shorter and wider.
Below are a selection of dashboards, reports and activity schedules that enable management control, reporting and performance of aged debt alongside the day-to-day execution and effectiveness of collections teams and agents. If you need help with Breaking BAD then please get in touch for a free demo of our system and modules.
BAD DEBT DASHBOARD – ALL ACCOUNTS – UPDATED DAILY OR IN REAL TIME
FAST CLICK AGED DEBT POSITION BY ACCOUNT – AGENT CAN QUICKLY SEE WHO IS WHERE
DEBTOR COCKPIT – AGENT HAS FULL OVERVIEW OF INDIVIDUAL ACCOUNT POSITION
CREDIT SCORING – AGED DEBT CAN BE MADE KEY PART OF CREDIT SCORE IMPACT
AGED DEBT MANAGEMENT REPORT – AUTOMATICALLY SCHEDULED MONTHLY