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- How quickly your customers are paying
- How well your credit and collections team is performing
- How long it takes on average to collect open invoices
- An indication of your customer satisfaction - happy customers have fewer reasons not to pay!
- The credit position of your customers
- How well you are doing compared to your internal or industry peers - a benchmark
2. Ageing Invoice, how long the invoice ages (like wine ages, but in this case it turns in vinager) before the customer pays an invoice. The ageing should be as low as possible of course. The oldest invoices (and largest) are the biggest worry for a credit manager. Not only for it will become more and more difficult to recover but also for how much money (interest, margin,..have you already missed on these unpaid invoices).
Tags: IT, published, Accounting, business, risk
October 19, 2015 at 12:37PM
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