Your portfolio is healthy. Balanced cash flow, good DSO (days sales outstanding), strong payment performance, and low credit risk. But what happens if your customers’ customers aren’t looking as rosy?
An organisations insolvency can send shock waves beyond its immediate business relationships. Financially sound creditors can find themselves suffering at the hands of bad debt being pushed along the chain.
Whilst there is little you can do to control the fallout from insolvency within your network of customers’ customers, there are measures you can take.
What is a Statement of Affairs?
A business files a Statement of Affairs should it ever go through insolvency proceedings.
It tells us:
• Who they are
• How much they owe
• The value of their total assets
And we can work out:
• If it will cause bad debt
• Who that bad debt will affect
Get ahead of the effects of bad debt
Introducing Bad Debt Notifications, an email notification service that gives you quick access to information on bad debt in your UK business customer portfolio.
Bad Debt Notifications offer a reliable solution to manage potential bad debt:
1. Send your customer data to Experian through our secure data transfer service
2. We’ll match your portfolio to our comprehensive UK business database, the Megafile
3. We send you Bad Debt Notification whenever an adverse event occurs to any of your customers
To talk about how we can help you to manage the effects of bad debt within your business network, talk to your Account Manager or call us on 0844 4819920.