Phase 1 · Live · Credit Risk
Receivables Risk Ranker
Concentration risk in receivables is the most common early-warning sign of a collection crisis. This tool scores your top customers by days overdue and percentage of total AR, then ranks them by risk severity so you know exactly where to focus collection effort.
How to read your result
- Within terms — No action: Customer is paying on time. Maintain relationship quality.
- 1–30 days overdue or 15–30% AR — Monitor: Flag for follow-up. Early, professional contact is far more effective than chasing after 60 days.
- 30+ days overdue or 30%+ concentration — Escalate: Active collection required. Send formal notice and review credit terms for future orders.
- Both flags — Immediate action: Contact the customer at senior level today. Document all communications and assess recovery options.
What this tool does not do
- Verify actual invoice balances against your accounting system
- Model recovery probabilities based on customer financial position
- Account for disputed invoices or credit notes in the AR balance
- Generate formal demand letters or legal notices
This tool is a decision-support aid and does not constitute financial advice.