kredcor

Credit Calculator

Kredcor Recovery Suite
Live V8 management edition

Debtor Control, Recovery Readiness & ROI Calculator

This live version helps credit managers, debtors clerks, CFOs, and SME owners quickly see where cash may be getting trapped, where debtor control may be slipping, and which risk signals may already justify faster, firmer action.

DSO, ADD & BPDSO
90+ bucket pressure
Cost of inaction
Promise kept rate
Top-5 concentration
Escalation readiness
Privacy first: this calculator runs in the visitor’s browser only. Nothing is automatically submitted or stored. Visitors stay fully in control unless they choose to copy or email their prepared enquiry.
Tutorial: below the calculator you will find a comprehensive tutorial on how to use the Credit Calculator. There is also a Terminology section and example cases.
Need a confidential second opinion on your overdue book?
  • See where overdue debt may already be restricting cash flow.
  • Understand whether routine collections are still enough or whether escalation may now be appropriate.
  • Prepare a cleaner, decision-ready summary before speaking to Kredcor.

Support options

These options help visitors quickly identify the kind of support that may best fit their current debtor-control pressure.

Fast triage

Confidential callback

A quick confidential discussion to understand the pressure points, the immediate risk, and the most sensible next step.

  • Best for urgent uncertainty
  • Useful for owners and CFOs
  • Helps frame the problem quickly
Control review

Debtor book assessment

A broader review of overdue structure, disputes, promise discipline, and the operational gaps that may be weakening debtor control.

  • Best for credit managers
  • Useful where drift is increasing
  • Supports internal improvement planning
Recovery path

Pre-collection / handover prep

When severe arrears are building, this option helps frame a cleaner, faster, and more defensible escalation path.

  • Best for heavier overdue books
  • Useful when 90+ pressure is rising
  • Supports escalation readiness

1) Portfolio inputs

Use month-end or quarter-end numbers. Keep them practical rather than theoretical.

2) Behaviour, cost, and file strength

These turn the age analysis into management-level guidance.

3) Documentation readiness

Tick what is available. This affects readiness, leverage, and escalation quality.

DSO
0

Average collection speed in days.

Waiting...
ADD
0

Average days delinquent beyond agreed terms.

Waiting...
Best possible DSO
0

DSO if only current balances remained.

Waiting...
CEI
0%

Collection effectiveness for the period.

Waiting...
Overdue ratio
0%

Share of the book already overdue.

Waiting...
90+ pressure
0%

Severe age pressure in the book.

Waiting...
Promise kept rate
0%

Share of tracked promises that appear to have held.

Waiting...
Top-5 concentration
0%

Combined top-5 debtors as a share of the book.

Waiting...
Recovery probability
0%

Practical recoverability estimate.

Waiting...
Documentation readiness
0%

Strength of file preparation.

Waiting...
Escalation readiness
0%

How ready the file appears for firmer action.

Waiting...
Expected net recovery
R 0

Estimated recoverable value after fee and reserve.

Waiting...

Debtor control score

A plain-language score showing how much real control the debtor book appears to be under.

0 out of 100
Enter figures and calculate to see the control commentary.
Cash trapped above terms R 0
Monthly cost of inaction R 0
90-day cost of inaction R 0
Handover urgency Waiting

Recommended path

A practical commercial view of what the current numbers appear to justify.

Waiting...
Enter figures and click calculate.

Executive summary

Enter figures and click calculate.

Executive spotlight

A sharper management lens for owners, CFOs, and credit leaders who need to decide where to act first.

Cash unlock opportunity
R 0
Potential working-capital release if collection speed improves.
Severe arrears watch
0%
Share of the total book already sitting in severe age territory.
Promise discipline
0%
Broken promises as a share of all tracked payment promises.
Top-5 pressure
0%
Combined concentration of the top five debtors.
Board-level note
Enter figures to see the main management message.

Live management alerts

These alerts are designed to feel like a management-control dashboard rather than a basic calculator.

Cash Flow Alert
Waiting...
Calculate to see the cash flow signal.
Severe Age Alert
Waiting...
Calculate to see the severe arrears signal.
Promise Discipline Alert
Waiting...
Calculate to see the promise reliability signal.
Escalation Alert
Waiting...
Calculate to see the escalation signal.

Book composition chart

A quick visual of the current book, overdue exposure, severe age pressure, and disputed value.

Collections diagnostic table

Use this in internal reviews with collectors, managers, and owners.

MetricResultStatusMeaning
Calculate to populate diagnostics.

Top 5 debtor-book focus table

This helps the team decide where attention, pressure, and management oversight should go first, even before the deeper plugin version is ready.

PriorityFocus areaExposure / signalWhy it mattersRecommended action
Calculate to populate focus priorities.

Why act now?

These points translate the figures into commercial pressure points that matter to CFOs and business owners.

Cash flow pressure
Enter figures to see the liquidity impact of delayed collections.
Severe bucket deterioration
Enter figures to see the warning signals in the 90+ bucket.
Margin replacement
Enter figures to estimate how much extra sales may be needed to replace trapped value.
Management time drain
Enter figures to highlight the effort and cost of delay.

Next 48 hours

Immediate actions that should happen now.

    Next 7 days

    Short-cycle control improvements and escalation work.

      Strategic improvements

      Longer-term debtor-book control improvements.

        Promised-to-pay guidance

        Keep payment promises under strict discipline so the file does not drift.

          Pre-collection checklist

          Complete these steps before external handover or formal escalation.

            Optional: request a confidential callback or prepare a Kredcor enquiry

            Nothing is sent automatically. This section simply helps the visitor prepare a cleaner, more decision-ready enquiry for Kredcor.

            Important: this tool is designed to support debtor-control decisions, prioritisation, and recovery planning. It does not replace legal advice, accounting judgement, or a formal credit-risk review.
            ';var win = window.open('', '_blank'); if (!win) { alert('Please allow pop-ups for this page so the print / PDF report can open.'); return; } win.document.open(); win.document.write(html); win.document.close(); }function render() { var data = gather(); var m = compute(data);var dsoClass = classify(m.dso, 'dso', data.terms); var addClass = classify(m.add, 'add'); var bpdsoClass = classify(m.bestPossibleDSO, 'bpdso', data.terms); var ceiClass = classify(m.cei, 'cei'); var overdueClass = classify(m.overdueRatio, 'overdue'); var b90Class = classify(m.bucket90Ratio, '90'); var keptClass = classify(m.keptRate, 'kept'); var top5Class = classify(m.top5Concentration, 'top5'); var docsClass = classify(m.docsReadiness, 'docs'); var recClass = classify(m.recoveryProbability, 'recovery'); var escalationClass = classify(m.escalationReadiness, 'escalation'); var urgency = urgencyLabel(m.urgencyPoints); var path = determinePath(data, m, urgency); var whyNow = buildWhyNow(data, m); var focus = focusRows(data, m, urgency);setText('kr8_out_dso', days(m.dso)); setText('kr8_out_dso_text', 'Target terms are ' + data.terms + ' days.'); setBadge('kr8_out_dso_badge', dsoClass[0], dsoClass[1]);setText('kr8_out_add', days(m.add)); setText('kr8_out_add_text', 'Delinquency beyond agreed payment terms.'); setBadge('kr8_out_add_badge', addClass[0], addClass[1]);setText('kr8_out_bpdso', days(m.bestPossibleDSO)); setText('kr8_out_bpdso_text', 'Shows the underlying DSO if only current balances remained.'); setBadge('kr8_out_bpdso_badge', bpdsoClass[0], bpdsoClass[1]);setText('kr8_out_cei', pct(m.cei, 1)); setText('kr8_out_cei_text', 'How much collectible AR was actually converted into cash.'); setBadge('kr8_out_cei_badge', ceiClass[0], ceiClass[1]);setText('kr8_out_overdue', pct(m.overdueRatio, 1)); setText('kr8_out_overdue_text', money(data.overdueTotal) + ' of ' + money(data.endingAR) + ' is overdue.'); setBadge('kr8_out_overdue_badge', overdueClass[0], overdueClass[1]);setText('kr8_out_90', pct(m.bucket90Ratio, 1)); setText('kr8_out_90_text', pct(m.bucket90OverdueShare, 1) + ' of overdue value sits in 90+.'); setBadge('kr8_out_90_badge', b90Class[0], b90Class[1]);setText('kr8_out_kept', pct(m.keptRate, 1)); setText('kr8_out_kept_text', 'Estimated kept rate from tracked promises versus broken promises.'); setBadge('kr8_out_kept_badge', keptClass[0], keptClass[1]);setText('kr8_out_top5', pct(m.top5Concentration, 1)); setText('kr8_out_top5_text', 'Combined top-5 debtors as a share of the total ledger.'); setBadge('kr8_out_top5_badge', top5Class[0], top5Class[1]);setText('kr8_out_recovery', pct(m.recoveryProbability, 0)); setText('kr8_out_recovery_text', 'Weighted from age, file strength, payment behaviour, disputes, and concentration.'); setBadge('kr8_out_recovery_badge', recClass[0], recClass[1]);setText('kr8_out_docs', pct(m.docsReadiness, 0)); setText('kr8_out_docs_text', data.docs.checked + ' of ' + data.docs.total + ' core items are present.'); setBadge('kr8_out_docs_badge', docsClass[0], docsClass[1]);setText('kr8_out_escalation', pct(m.escalationReadiness, 0)); setText('kr8_out_escalation_text', 'Readiness based on file strength, disputes, payment freshness, and behaviour.'); setBadge('kr8_out_escalation_badge', escalationClass[0], escalationClass[1]);setText('kr8_out_net', money(m.expectedNetRecovery)); setText('kr8_out_net_text', 'Based on overdue value, recovery probability, fee, and reserve.'); setBadge('kr8_out_net_badge', m.expectedNetRecovery > 0 ? 'Practical value identified' : 'Low estimated value', m.expectedNetRecovery > 0 ? 'kr-good' : 'kr-warn');setText('kr8_out_score', Math.round(m.controlScore)); setText('kr8_score_comment', scoreComment(m.controlScore)); setText('kr8_out_trapped', money(m.trappedCash)); setText('kr8_out_inaction_month', money(m.costMonth)); setText('kr8_out_inaction_90', money(m.cost90)); setText('kr8_out_urgency', urgency.title);var deg = Math.round((m.controlScore / 100) * 360); $('kr8_score_circle').style.background = 'radial-gradient(closest-side, #fff 77%, transparent 78% 100%), conic-gradient(#7a1731 0deg, #7a1731 ' + deg + 'deg, #e5edf5 ' + deg + 'deg)';setText('kr8_path_title', path.title); setText('kr8_path_text', path.text);var summary = [ 'The debtor book currently scores ' + Math.round(m.controlScore) + '/100 for practical control.', 'DSO is ' + days(m.dso) + ', ADD is ' + days(m.add) + ', and Best Possible DSO is ' + days(m.bestPossibleDSO) + ', which helps separate true overdue pressure from normal trading balances.', 'CEI is ' + pct(m.cei, 1) + ', overdue balances represent ' + pct(m.overdueRatio, 1) + ' of the total book, and the 90+ bucket represents ' + pct(m.bucket90Ratio, 1) + ' of the ledger.', 'Promise kept rate is ' + pct(m.keptRate, 1) + ', top-5 concentration is ' + pct(m.top5Concentration, 1) + ', and escalation readiness is ' + pct(m.escalationReadiness, 0) + '.', 'Estimated monthly cost of inaction is ' + money(m.costMonth) + ', and trapped cash above agreed terms is approximately ' + money(m.trappedCash) + '.', 'Documentation readiness is ' + pct(m.docsReadiness, 0) + ', recovery probability is estimated at ' + pct(m.recoveryProbability, 0) + ', and the current urgency rating is ' + urgency.title.toLowerCase() + '.' ].join(' ');setText('kr8_summary_text', summary); setText('kr8_why_cash', whyNow.cash); setText('kr8_why_bucket', whyNow.bucket); setText('kr8_why_margin', whyNow.margin); setText('kr8_why_time', whyNow.time);var spotlightCash = money(m.trappedCash); var spotlightSevere = pct(m.bucket90Ratio, 1); var spotlightPromise = pct((m.brokenRate * 100), 1); var spotlightTop5 = pct(m.top5Concentration, 1); var boardNote = urgency.title === 'Immediate escalation' ? 'Severe arrears, delay signals, and file pressure suggest that waiting longer may weaken control, reduce leverage, and lower recovery outcomes.' : (urgency.title === 'High priority' ? 'Management attention is warranted now. This book needs tighter cadence, firmer promise discipline, and clear escalation readiness.' : 'The book appears manageable, but weak follow-through from here could allow current balances to drift into slower, more expensive recovery stages.');setText('kr8_spot_cash', spotlightCash); setText('kr8_spot_cash_text', 'Potential working-capital release if collection speed improves.'); setText('kr8_spot_severe', spotlightSevere); setText('kr8_spot_severe_text', 'Share of the total book already sitting in severe age territory.'); setText('kr8_spot_promise', spotlightPromise); setText('kr8_spot_promise_text', 'Broken promises as a share of all tracked payment promises.'); setText('kr8_spot_top5', spotlightTop5); setText('kr8_spot_top5_text', 'Combined concentration of the top five debtors.'); setText('kr8_spot_board', boardNote);var actions48 = build48hActions(data, m, urgency); var actions7 = build7DayActions(data, m); var actionsStrat = buildStrategicActions(data, m); var ptp = ptpGuidance(data, m); var pre = checklist(data);$('kr8_actions_48h').innerHTML = actions48.map(function (item) { return '
          • ' + esc(item) + '
            • '; }).join(''); $('kr8_actions_7d').innerHTML = actions7.map(function (item) { return '
          • ' + esc(item) + '
            • '; }).join(''); $('kr8_actions_strat').innerHTML = actionsStrat.map(function (item) { return '
          • ' + esc(item) + '
            • '; }).join(''); $('kr8_ptp_guidance').innerHTML = ptp.map(function (item) { return '
          • ' + esc(item) + '
            • '; }).join(''); $('kr8_checklist').innerHTML = pre.map(function (item) { return '
          • ' + esc(item) + '
            • '; }).join('');renderDiagnosticTable(data, m); renderFocusTable(data, m, urgency); drawChart(data);var alertCashTitle, alertCashText, alertCashClass; if (m.add > 12 || m.trappedCash > (data.creditSales * 0.08)) { alertCashTitle = 'Elevated'; alertCashText = 'An estimated ' + money(m.trappedCash) + ' appears trapped above terms. Cash conversion is likely under pressure.'; alertCashClass = 'kr-a-bad'; } else if (m.add > 3) { alertCashTitle = 'Watch'; alertCashText = 'Delinquency is building beyond terms. Working-capital pressure may rise if drift continues.'; alertCashClass = 'kr-a-warn'; } else { alertCashTitle = 'Contained'; alertCashText = 'Current timing appears more stable, but discipline is still needed to protect cash conversion.'; alertCashClass = 'kr-a-good'; }var alertSevereTitle, alertSevereText, alertSevereClass; if (m.bucket90Ratio >= 18) { alertSevereTitle = 'Critical'; alertSevereText = pct(m.bucket90Ratio,1) + ' of the book is already in 90+. Delay may now start eroding recovery quality.'; alertSevereClass = 'kr-a-bad'; } else if (m.bucket90Ratio >= 8) { alertSevereTitle = 'Building'; alertSevereText = 'Older debt needs closer management before it hardens into a bigger recovery problem.'; alertSevereClass = 'kr-a-warn'; } else { alertSevereTitle = 'Contained'; alertSevereText = 'Severe-age pressure appears relatively contained at present.'; alertSevereClass = 'kr-a-good'; }var alertPromiseTitle, alertPromiseText, alertPromiseClass; if (m.keptRate < 60) { alertPromiseTitle = 'Weak'; alertPromiseText = 'Payment promises may no longer be a reliable control mechanism. Stronger follow-through is likely needed.'; alertPromiseClass = 'kr-a-bad'; } else if (m.keptRate < 80) { alertPromiseTitle = 'Mixed'; alertPromiseText = 'Promise discipline is weakening. Tight written confirmation and same-day follow-up matter here.'; alertPromiseClass = 'kr-a-warn'; } else { alertPromiseTitle = 'Healthy'; alertPromiseText = 'Tracked promises appear relatively dependable, but continued discipline is still important.'; alertPromiseClass = 'kr-a-good'; }var alertEscTitle, alertEscText, alertEscClass; if (m.escalationReadiness >= 80 && urgency.title !== 'Routine control') { alertEscTitle = 'Ready'; alertEscText = 'The file appears reasonably prepared for firmer recovery action if management chooses to escalate.'; alertEscClass = 'kr-a-good'; } else if (m.escalationReadiness >= 60) { alertEscTitle = 'Almost ready'; alertEscText = 'Escalation may be possible soon, but closing remaining file or dispute gaps could improve leverage.'; alertEscClass = 'kr-a-warn'; } else { alertEscTitle = 'Not ready'; alertEscText = 'The file may still need work before stronger escalation can be pursued confidently.'; alertEscClass = 'kr-a-bad'; }setText('kr8_alert_cash_title', alertCashTitle); setText('kr8_alert_cash_text', alertCashText); setAlertClass('kr8_alert_cash_box', alertCashClass);setText('kr8_alert_severe_title', alertSevereTitle); setText('kr8_alert_severe_text', alertSevereText); setAlertClass('kr8_alert_severe_box', alertSevereClass);setText('kr8_alert_promise_title', alertPromiseTitle); setText('kr8_alert_promise_text', alertPromiseText); setAlertClass('kr8_alert_promise_box', alertPromiseClass);setText('kr8_alert_escalation_title', alertEscTitle); setText('kr8_alert_escalation_text', alertEscText); setAlertClass('kr8_alert_escalation_box', alertEscClass);window.__kredcorRoiV8 = { data: data, metrics: m, urgency: urgency, path: path, summary: summary, whyNow: whyNow, spotlight: { cash: spotlightCash, severe: spotlightSevere, promise: spotlightPromise, top5: spotlightTop5, board: boardNote }, alerts: { cash: alertCashText, severe: alertSevereText, promise: alertPromiseText, escalation: alertEscText }, focus: focus, actions48: actions48, actions7: actions7, actionsStrat: actionsStrat, ptp: ptp, checklist: pre };refreshShareMessage(); }$('kr8_calculate').addEventListener('click', render); $('kr8_pdf').addEventListener('click', printPdf); $('kr8_copy_summary').addEventListener('click', function () { var state = window.__kredcorRoiV8; if (!state) render(); state = window.__kredcorRoiV8; if (!state) return; copyText(state.summary, 'Executive summary copied.'); }); $('kr8_copy_report').addEventListener('click', function () { var state = window.__kredcorRoiV8; if (!state) render(); state = window.__kredcorRoiV8; if (!state) return; copyText(buildFullReport(state), 'Full report copied.'); }); $('kr8_example').addEventListener('click', loadExample); $('kr8_reset').addEventListener('click', resetAll);$('kr8_jump_enquiry').addEventListener('click', function () { var target = $('kr8_enquiry_anchor'); if (target && target.scrollIntoView) target.scrollIntoView({ behavior: 'smooth', block: 'start' }); });$('kr8_jump_results').addEventListener('click', function () { var target = $('kr8_results_anchor'); if (target && target.scrollIntoView) target.scrollIntoView({ behavior: 'smooth', block: 'start' }); });$('kr8_share_toggle').addEventListener('change', function () { $('kr8_share_panel').classList.toggle('active', this.checked); refreshShareMessage(); });$('kr8_prepare_share').addEventListener('click', refreshShareMessage); $('kr8_copy_share').addEventListener('click', function () { refreshShareMessage(); copyText($('kr8_share_output').value, 'Enquiry message copied.'); }); $('kr8_open_email').addEventListener('click', openEmailDraft);var packageButtons = document.querySelectorAll('#kredcor-roi-v8 .kr8-package-select'); for (var p = 0; p < packageButtons.length; p++) { packageButtons[p].addEventListener('click', function () { selectPackage(this.getAttribute('data-service') || 'General debtor assessment'); }); }var liveInputs = document.querySelectorAll('#kredcor-roi-v8 input[type="number"], #kredcor-roi-v8 input[type="checkbox"]'); for (var a = 0; a < liveInputs.length; a++) { liveInputs[a].addEventListener('input', render); liveInputs[a].addEventListener('change', render); }var shareInputs = ['kr8_name','kr8_company','kr8_email','kr8_phone','kr8_service','kr8_time_pref','kr8_qual_overdue','kr8_qual_timing','kr8_notes']; for (var b = 0; b < shareInputs.length; b++) { $(shareInputs[b]).addEventListener('input', refreshShareMessage); $(shareInputs[b]).addEventListener('change', refreshShareMessage); }render(); })();

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            View the step-by-step guide below.

            Kredcor Recovery Suite Calculator Manual
            1) What this calculator is for

            The calculator is a debtor-control and recovery-readiness tool.  

            It helps a business answer practical questions such as: 

            • Are our customers paying close to terms, or are they slipping?  
            • Is our overdue book still manageable, or is it hardening into a recovery problem?  
            • Are payment promises reliable, or are they becoming excuses for delay?  
            • Is our documentation strong enough for firmer action?  
            • How much cash may be trapped because collections are too slow?  
            • Is this still a routine collections issue, or is it becoming a management issue?  

            The calculator is most useful for credit managers, debtors clerks, CFOs, finance managers, and SME owners because it translates raw debtor-book figures into operational signals, priority actions, and management commentary. DSO and related receivables metrics are meant to be read as cash-flow and working-capital indicators, not just finance ratios.  

            The calculator takes your receivables numbers and turns them into five layers of insight: 

            Layer 1: Collection speed 

            It measures how quickly your debtors are paying, using indicators like DSO, ADD, and Best Possible DSO. DSO shows overall collection speed, ADD shows how many days customers are paying late beyond terms, and Best Possible DSO isolates your current balances to show what your DSO would look like if overdue invoices were not dragging the book down.  

            Layer 2: Collection quality 

            It looks at CEI and promise kept rate to show whether your collections process is genuinely converting receivables into cash. CEI is widely used as a collection-efficiency measure, and guidance from receivables software providers commonly treats 80%+ as a good result, with much lower scores indicating a collections process that needs review.  

            Layer 3: Risk pressure 

            It measures how much of the book is overdue, how much is already in 90+ days, how concentrated the book is in the top debtors, and how much is disputed. This matters because AR aging is where collections problems become visible: an aging schedule helps identify overdue accounts, cash-flow pressure, and where stronger action may be needed.  

            Layer 4: Recovery readiness 

            It looks at documentation, payment behaviour, dispute pressure, and last-payment recency to estimate recovery probability and escalation readiness. Best Possible DSO and the gap between standard DSO and Best Possible DSO are useful precisely because that gap highlights overdue receivables and collections inefficiencies.  

            Layer 5: Management action 

            Before entering data, collect these from your accounting or ERP system: 

            • aged receivables report  
            • statement of account totals  
            • credit sales report for the period  
            • collections notes or promise-to-pay tracker  
            • dispute log  
            • list of top debtor balances  
            • current customer terms  
            • rough estimate of internal collection cost  
            • rough estimate of annual funding cost / cost of capital  
            • gross margin percentage  

            For most businesses, the best time to use the calculator is: 

            • month-end  
            • quarter-end  
            • before a management meeting  
            • before external handover discussions  
            • when cash flow suddenly tightens  

            A. Period and terms

            Days in period 

            Enter the number of days for the period you are measuring. 

            Examples: 

            • monthly review: 30 or 31  
            • quarterly review: 90  
            • annual review: 365  

            Target payment terms (days) 

            Enter your normal agreed terms for the customers you are reviewing. 

            Examples: 

            • 7 days  
            • 14 days  
            • 30 days  
            • 45 days  
            • 60 days  

            This is important because many of the results compare real payment behaviour against your agreed terms. 

             B. Portfolio inputs

            Credit sales for period (R) 

            This is the total credit sales made during the same period you are analysing. 

            Use: 

            • only credit sales  
            • not cash sales  
            • ideally net of returns and discounts, if your reporting allows it  

            DSO is calculated from receivables and credit sales over the same period, so matching the period correctly matters.  

            Opening receivables (R) 

            This is your total debtor book at the start of the period. 

            Ending receivables (R) 

            This is your total debtor book at the end of the period. 

            Ending current receivables (R) 

            This is the portion of your ending receivables that is still current, meaning not yet overdue. 

            This number is important because the calculator uses it to estimate Best Possible DSO. 

            Total overdue balance (R) 

            This is the total value of all invoices already overdue at period end. 

            90+ day bucket (R) 

            This is the amount already sitting at 90 days or older. 

            This bucket deserves special attention because aging schedules use these older bands to highlight serious collection risk. A large 90+ bucket is a classic warning sign in AR analysis.  

            Largest debtor exposure (R) 

            Enter the balance of your biggest single debtor. 

            Top 5 debtor combined exposure (R) 

            Enter the combined total of your five largest debtor balances. 

            This helps show concentration risk. A book can look healthy overall but still be dangerous if too much of it depends on a small cluster of customers. 

            Active debtor accounts 

            Enter the number of debtor accounts you are actively managing. 

            This is useful for context. A R500,000 overdue book across 500 customers is a different management problem from R500,000 overdue across 8 customers. 

             C. Behaviour, cost, and file strength

            Total promises tracked 

            Enter the number of payment promises you are actively tracking for the period or the collection review cycle. 

            Broken promise count 

            Enter how many of those promises were missed, broken, or rolled. 

            This lets the calculator estimate promise kept rate and promise discipline. 

            Disputed amount (R) 

            Enter the value currently delayed by: 

            • invoice queries  
            • POD disputes  
            • pricing disputes  
            • service disputes  
            • “we never received it” style objections  
            • other unresolved reasons  

            This number matters because disputes often hide both real operational issues and strategic delay behaviour. 

            Days since last payment 

            Enter the number of days since the debtor of concern, or the typical severe case, last made payment. 

            Recent payment usually improves confidence. No recent payment is a warning. 

            Annual cost of capital (%) 

            Enter your estimated cost of carrying or funding the debtor book. 

            This can reflect: 

            • overdraft cost  
            • working-capital financing cost  
            • opportunity cost of trapped cash  
            • internal finance target hurdle  

            Monthly internal collection cost (R) 

            Estimate the monthly cost of chasing the overdue book. 

            Include things like: 

            • collector salaries or time allocation  
            • reminder calls and emails  
            • admin time  
            • dispute follow-up  
            • finance management time, if material  

            Monthly deterioration on 90+ bucket (%) 

            Estimate how much value you believe is lost each month on older debt because of delay. 

            This is a management estimate, not an accounting rule. It helps illustrate the cost of waiting. 

            External recovery fee (%) 

            Enter the likely contingency or success fee if the account is handed over externally. 

            Escalation / legal reserve (R) 

            Estimate the friction cost or reserve for escalation. 

            Gross margin on sales (%) 

            Enter your gross margin percentage. 

            This allows the calculator to show how much extra sales may be needed to replace trapped value. 

             D. Documentation readiness checkboxes

            These boxes test how complete your file is. 

            Signed credit application 

            Do you have proof that the customer applied for and accepted credit? 

            Invoices and statement of account 

            Can you clearly show what is owed and reconcile it? 

            Delivery proof / PO / job card 

            Can you prove the goods or services were supplied? 

            Accepted terms / contract 

            Can you show what was agreed? 

            Communication and demand trail 

            Do you have a dated record of emails, calls, demands, and promises? 

            Correct debtor contact details 

            Do you know who pays, who approves, and who decides? 

            This matters because documentation strength directly affects collection leverage and escalation quality. 

            This is the “learn it properly” section. 

            Accounts Receivable (AR) 

            Money owed to your business by customers who bought on credit. 

            Debtor book 

            The full total of customer balances outstanding. 

            Current receivables 

            Invoices not yet overdue. 

            Overdue receivables 

            Invoices already past due date. 

            Aging / Age analysis 

            A report that groups receivables by age bucket, such as: 

            • current  
            • 1–30 days overdue  
            • 31–60 days overdue  
            • 61–90 days overdue  
            • 90+ days overdue  

            Aging schedules are standard tools for identifying overdue accounts and collection pressure.  

            DSO — Days Sales Outstanding 

            The average number of days it takes to collect payment after a credit sale. 

            Lower DSO is generally better, but it must be interpreted by industry and by your own terms. DSO is also part of working-capital analysis and the cash conversion cycle.  

            ADD — Average Days Delinquent 

            How many days late customers are paying beyond the due date or beyond what Best Possible DSO suggests. ADD gives a clearer view of lateness than DSO alone.  

            BPDSO — Best Possible DSO 

            The DSO that would exist if only current receivables remained. It helps separate “normal on-time book” from “overdue drag.” A large gap between DSO and Best Possible DSO usually means overdue debt and collections inefficiency are widening.  

            CEI — Collection Effectiveness Index 

            A measure of how effectively collectible receivables were converted into cash during a period. It is often used alongside DSO because it gives a fuller picture of collections performance. Guidance from AR software and advisory sources commonly treats 80%+ as good, and much lower values as a warning sign.  

            Promise kept rate 

            The share of tracked payment promises that were kept. 

            Broken promise ratio 

            The share of tracked promises that were broken. 

            Concentration risk 

            The degree to which your debtor book depends on one or a few customers. 

            Top-5 concentration 

            The share of the full debtor book represented by the five largest debtors. 

            Recovery probability 

            A practical estimate of how recoverable the overdue book appears, based on age, payment behaviour, file strength, dispute pressure, and recent payment signs. 

            Escalation readiness 

            A practical estimate of whether the file appears ready for firmer action. This is a calculator-specific management score, not a universal accounting standard. 

            Cost of inaction 

            The estimated monthly and 90-day cost of allowing the overdue situation to continue. 

            Trapped cash 

            Working capital tied up in slow collections above terms. 

            90+ bucket 

            Debt aged 90 days or more. This is often the “hardening zone” in collections, where recovery tends to become slower and more expensive. 

            DSO 

            What it means 

            This tells you how long, on average, it takes to collect. 

            How to think about it 

            • close to terms = healthy  
            • moderately above terms = drifting  
            • far above terms = cash conversion problem  

            Example 

            If terms are 30 days and DSO is 52 days, you are collecting about 22 days slower than your commercial policy suggests. 

             

            ADD 

            What it means 

            ADD tells you the lateness beyond terms. 

            How to think about it 

            • 0–3 days: very close to expected  
            • 4–12 days: watch closely  
            • 13+ days: the book is meaningfully late  

            This is often one of the easiest numbers for non-finance managers to understand. 

             

            Best Possible DSO 

            What it means 

            This tells you how the book would behave if only current invoices remained. 

            How to think about it 

            • close to terms = current invoices are not the main problem  
            • far below actual DSO = the overdue book is dragging collections down  
            • above terms = even your “current” book may already be stretching payment behaviour  

            Practical use 

            Compare: 

            • actual DSO  
            • Best Possible DSO  
            • the gap between them  

            A big gap usually means the overdue portion of the book is where the real problem sits.  

             

            CEI 

            What it means 

            CEI measures how much of the collectible receivable pool was actually collected during the period. 

            Practical bands 

            • 90–100%: very strong  
            • 80–89%: good / acceptable  
            • 70–79%: weak / needs work  
            • below 70%: significant concern  

            Sources that explain CEI commonly describe 80%+ as strong or good, while much lower scores should be investigated.  

            Why it matters 

            DSO can move slowly. CEI often shows collection discipline more directly. 

             

            Overdue ratio 

            What it means 

            What percentage of the entire book is overdue. 

            How to think about it 

            • under 20%: usually healthier  
            • 20–40%: pressure building  
            • above 40%: overdue exposure is heavy  

            This is not a universal rule, but it is a very practical operational guide. 

             

            90+ pressure 

            What it means 

            What percentage of the whole book is already 90+. 

            How to think about it 

            • under 8%: contained  
            • 8–18%: watch carefully  
            • above 18%: serious severe-age pressure  

            This is one of the most useful warning indicators in the calculator. 

             

            Promise kept rate 

            What it means 

            How often debtors actually do what they said they would do. 

            How to think about it 

            • 80%+: promises mostly credible  
            • 60–79%: promises weakening  
            • below 60%: promises are no longer a reliable control tool  

            When promise kept rate is weak, the collector may feel busy, but real control is low. 

             

            Top-5 concentration 

            What it means 

            How much of the entire book depends on the five biggest debtors. 

            How to think about it 

            • under 35%: more diversified  
            • 35–55%: watch closely  
            • above 55%: concentration is heavy  

            A concentrated book is risky because a small number of debtors can cause a disproportionate liquidity shock. 

             

            Documentation readiness 

            What it means 

            How strong and complete your file is. 

            How to think about it 

            • 85%+: strong file  
            • 65–84%: workable but gaps remain  
            • below 65%: file weakness may reduce leverage  

             

            Escalation readiness 

            What it means 

            How ready the file appears for stronger action. 

            How to think about it 

            • 80%+: relatively ready  
            • 60–79%: almost ready  
            • below 60%: improve file and process first  

            This is especially useful before external handover discussions. 

             

            Expected net recovery 

            What it means 

            An estimate of what may still be recovered after fee and reserve assumptions. 

            Important note 

            This is a decision-support figure, not a guarantee. 

             

            Cost of inaction 

            What it means 

            An estimate of how much delay may be costing the business every month and over 90 days. 

            Why it matters 

            This is often the number that gets management attention fastest. 

            Use this table as a directional reference, not a strict rulebook. 

            A finance glossary summarizing a 2024 survey reported the following average DSO values by broad sector: Distribution & Transportation 41, Energy & Utilities 19, Finance & Real Estate 11, Healthcare / Nonprofit / Government 22, Manufacturing & Construction 21, Retail / Food / Entertainment 26, and Technology & Professional Services 34. That same source stresses that “good” DSO depends heavily on industry.  

            Broad industry group 

            Directional average DSO 

            Distribution & Transportation 

            41 days 

            Energy & Utilities 

            19 days 

            Finance & Real Estate 

            11 days 

            Healthcare / Nonprofit / Government 

            22 days 

            Manufacturing & Construction 

            21 days 

            Retail / Food / Entertainment 

            26 days 

            Technology & Professional Services 

            34 days 

            How to use the table 

            Do not ask only, “Is my DSO high?” Ask three questions: 

            1. How does my DSO compare with my own payment terms?  
            1. How does it compare with my industry directionally?  
            1. Is it improving or worsening over time?  

            That is the right way to interpret AR days, because DSO by itself is only a high-level average. AR aging and trend analysis are essential companions.  

            Not every metric has a clean industry benchmark. Use these practical bands: 

            CEI 

            • 90–100% = excellent  
            • 80–89% = good  
            • 70–79% = weak  
            • below 70% = serious concern  

            ADD 

            • 0–3 days = very good  
            • 4–12 days = watch  
            • 13+ days = collection delay is material  

            DSO vs terms 

            A practical rule of thumb is that if AR days are consistently about 25% higher than standard terms, the collections process likely needs review. Chaser cites this as a simple operational rule.  

            90+ bucket 

            There is no single universal benchmark, but aging studies from D&B show that seriously past-due balances remain important risk markers, and many sectors still have meaningful 91+ delinquency. Use the calculator’s red-amber-green logic here as a practical management guide.  

            Top-5 concentration and escalation readiness 

            These are calculator management indicators, not globally standardized industry benchmarks. Use the calculator’s thresholds consistently over time and compare business units or monthly runs against one another. 

            Step 1: Start with terms, DSO, ADD, and Best Possible DSO 

            This tells you whether the issue is: 

            • mostly normal trading  
            • moderate lateness  
            • serious delinquency  
            • or a hard overdue drag problem  

            Quick reading guide 

            • DSO near terms + low ADD + low DSO/BPDSO gap = healthier book  
            • DSO far above terms + high ADD + large gap = overdue drag problem  

             

            Step 2: Check CEI 

            CEI tells you whether your collections machine is actually converting receivables into cash. 

            Interpretation 

            • good DSO but weak CEI = your book may look okay now, but collections discipline may be weakening  
            • weak DSO and weak CEI = collections performance problem  
            • weak DSO but better CEI = old debt may be weighing down the book, but current collections may be improving  

             

            Step 3: Check overdue ratio and 90+ pressure 

            This tells you whether your issue is still early-stage or already hardening. 

            Interpretation 

            • high overdue ratio + low 90+ = pressure is building, but you may still rescue it internally  
            • high overdue ratio + high 90+ = the book is hardening  
            • low overdue ratio + high 90+ = a smaller set of serious problem accounts may be dragging performance  

             

            Step 4: Check promise kept rate 

            This tells you whether your debtor conversations are producing real payment behaviour. 

            Interpretation 

            • high promise kept rate = promises still have control value  
            • low promise kept rate = promises may be excuses, not solutions  

            This is one of the clearest signals for when routine follow-up is no longer enough. 

             

            Step 5: Check documentation readiness and escalation readiness 

            This tells you whether stronger action is possible and whether you are ready for it. 

            Interpretation 

            • high urgency + high readiness = action can move faster  
            • high urgency + low readiness = fix the file immediately  
            • lower urgency + low readiness = use the time to strengthen the file before the problem worsens  

             

            Step 6: Read the management alerts 

            These alerts translate the numbers into business language: 

            • cash flow alert  
            • severe age alert  
            • promise discipline alert  
            • escalation alert  

            These are especially helpful for: 

            • management meetings  
            • owner reviews  
            • board summaries  
            • handover discussions

            Scenario A: Healthy but watchful 

            Typical profile: 

            • DSO close to terms  
            • ADD low  
            • CEI good  
            • overdue ratio modest  
            • 90+ low  

            Actions 

            • maintain discipline  
            • keep statements and reminders on time  
            • preserve documentation quality  
            • watch trend monthly  
            • do not let current debt drift into older buckets  

             

            Scenario B: Drifting control 

            Typical profile: 

            • DSO 5–15 days above terms  
            • ADD moderate  
            • CEI weakening  
            • overdue ratio rising  
            • promise kept rate slipping  

            Actions 

            • review reminder timing  
            • tighten weekly aged-debt review  
            • separate disputes from real payment delay  
            • require written promises  
            • review top 5 debtors more closely  
            • escalate broken promises faster  

             

            Scenario C: Hardening arrears 

            Typical profile: 

            • DSO materially above terms  
            • ADD high  
            • 90+ bucket rising  
            • promise kept rate weak  
            • overdue ratio heavy  

            Actions 

            • create a severe-arrears work queue  
            • separate routine collection from recovery work  
            • stop tolerating rolling promises  
            • prepare stronger demand flow  
            • review stop-supply or tighter credit controls  
            • get management involved  

             

            Scenario D: Escalation likely justified 

            Typical profile: 

            • high 90+ pressure  
            • low promise reliability  
            • decent documentation readiness  
            • high urgency  
            • high escalation readiness  

            Actions 

            • finalise file pack  
            • confirm balances and proof  
            • complete communication trail  
            • prepare decision on external handover or stronger recovery action  
            • stop wasting internal time where return is poor

            Here is a simple exam-style framework. 

            If DSO is high, ask: 

            • Are terms too loose?  
            • Are invoices correct and timely?  
            • Are reminders late?  
            • Are a few debtors dragging the average?  

            If ADD is high, ask: 

            • Are customers paying late beyond terms as a habit?  
            • Are we reacting too slowly to lateness?  

            If Best Possible DSO is good but actual DSO is poor, ask: 

            • Is the overdue book the real problem?  
            • Which debtor cluster is dragging the average?  

            If CEI is weak, ask: 

            • Are collectors chasing the right accounts?  
            • Are promises being logged and followed through?  
            • Are disputes being closed fast enough?  

            If 90+ is high, ask: 

            • Which accounts are hardening?  
            • Which of them still have good file strength?  
            • Which should be escalated?  

            If promise kept rate is low, ask: 

            • Are we accepting vague promises?  
            • Are we following up same day when a promise breaks?  
            • Are we treating repeated broken promises too softly?  

            If documentation readiness is low, ask: 

            • What is missing?  
            • Who will get it?  
            • By when?  

            If top-5 concentration is high, ask: 

            • Are we overexposed to a few debtors?  
            • Do those debtors deserve tighter credit oversight?  
            • Is management aware of the concentration risk?

            Imagine: 

            • terms = 30 days  
            • DSO = 52 days  
            • ADD = 17 days  
            • Best Possible DSO = 24 days  
            • CEI = 76%  
            • overdue ratio = 44%  
            • 90+ = 19%  
            • promise kept rate = 55%  
            • docs readiness = 83%  
            • escalation readiness = 79%  

            Interpretation 

            This tells a strong story: 

            • current invoices are not the main problem, because BPDSO is 24  
            • the overdue book is dragging the total DSO badly  
            • collections efficiency is weak  
            • 90+ is already significant  
            • payment promises are unreliable  
            • the file is reasonably strong  

            Management conclusion 

            This is no longer just a reminder-cycle problem. It is becoming a structured recovery problem. 

            Good next step 

            Move highest-risk balances into a separate severe-arrears process and prepare for stronger escalation. 

            Mistake 1: Mixing periods 

            Do not use: 

            • one month’s sales  
            • with a quarter-end receivables total  

            Keep the period consistent. 

            Mistake 2: Using cash sales in credit sales 

            The calculator is meant for credit sales, not all sales combined. 

            Mistake 3: Guessing current receivables incorrectly 

            Best Possible DSO depends heavily on this field. Use your aged receivables report carefully. 

            Mistake 4: Ignoring disputes 

            Some books look collectible until you discover a large share is stuck in unresolved operational queries. 

            Mistake 5: Treating promises as cash 

            A promise is not a payment. Promise quality matters. 

            Mistake 6: Looking only at one score 

            Never look only at DSO or only at the control score.  

            Read the whole story: 

            • speed  
            • quality  
            • risk  
            • readiness  
            • action  

            Cash Flow Alert 

            This is the calculator saying: 
            “Slow collections are now affecting working capital.” 

            Severe Age Alert 

            This means: 
            “Old debt is becoming more important and more dangerous.” 

            Promise Discipline Alert 

            This means: 
            “What customers say and what they actually do are separating.” 

            Escalation Alert 

            This means: 
            “Your file may or may not be ready for stronger action. Prepare accordingly.” 

            Field 

            Best source 

            Credit sales for period 

            sales report / ERP / revenue report 

            Opening receivables 

            prior period AR balance 

            Ending receivables 

            current AR balance 

            Current receivables 

            aged receivables report 

            Total overdue 

            aged receivables report 

            90+ bucket 

            aged receivables report 

            Largest debtor 

            top debtor list / aged receivables 

            Top 5 combined 

            top debtor list / aged receivables 

            Total promises tracked 

            collections tracker 

            Broken promises 

            collections tracker 

            Disputed amount 

            dispute log / collections notes 

            Days since last payment 

            debtor ledger / customer history 

            Cost of capital 

            finance estimate 

            Internal collection cost 

            management estimate 

            90+ deterioration rate 

            management estimate 

            External fee 

            likely recovery fee assumption 

            Legal reserve 

            finance / management estimate 

            Gross margin 

            management accounts / finance 

             

            Small businesses 

            Run it: 

            • monthly  
            • and whenever cash flow tightens suddenly  

            Mid-size businesses 

            Run it: 

            • monthly  
            • before credit committee or management review  
            • on major debtor clusters separately  

            Larger / multi-branch businesses 

            Run it: 

            • monthly at total-book level  
            • monthly by division or branch  
            • on major debtor concentrations  
            • before external handover discussions  

            Trend matters. DSO and AR metrics are most useful when compared over time, not just read as one isolated number.

            Weekly 

            • update promises  
            • close disputes  
            • review top exposures  
            • refresh severe-age list  

            Monthly 

            • run calculator  
            • compare this month to last month  
            • review top-5 concentration  
            • review 90+ movements  
            • update action plan  

            Quarterly 

            • review terms by customer segment  
            • tighten onboarding and documentation  
            • identify repeat slow payers  
            • review whether internal collections are still economical on certain accounts

            For easy memory: 

            DSO 

            • compare to terms  
            • compare to industry  
            • compare to trend  

            CEI 

            • 80%+ is the practical “good” line  
            • closer to 100% is stronger  

            ADD 

            • 0–3 = low delinquency  
            • 4–12 = watch  
            • 13+ = material lateness  

            DSO versus terms 

            • more than roughly 25% above terms on a sustained basis should trigger review  

            90+ pressure 

            • low is best  
            • rising is dangerous  
            • high needs focused attention

            The next additions that would make this training pack even stronger are: 

            • a worked example section with 3 full case studies  
            • a one-page quick-start guide  
            • a manager version and a collector version  
            • a glossary appendix in alphabetical order  
            • a monthly review checklist  
            • a board-report summary template  
            • a Kredcor interpretation guide for when to consider external help  
            • a quiz / self-test section so users can check whether they understand the calculator  

            The strongest add-on would be a “How to gather the numbers from Sage / Xero / QuickBooks / ERP” section, because that removes the biggest beginner friction point.

            A good user should leave this calculator understanding: 

            1. How fast are we collecting?  
            1. How late are customers really paying beyond terms?  
            1. How much of the book is already becoming dangerous?  
            1. Are payment promises still believable?  
            1. Is our file strong enough for firmer action?  
            1. How much cash is being trapped while we wait?  
            1. Which five things deserve attention first?  

            That is what makes this calculator powerful: it does not just produce numbers. It helps turn debtor information into control, prioritisation, and action. 

            Practical Interpretation Scenarios and What to Do Next 

            This section teaches the reader how to think like a skilled credit manager, CFO, or business owner. 

            The idea is simple: 

            Do not look at one number in isolation. 
            Look at the pattern the numbers are creating. 

            A good reader should learn to say: 

            “These numbers usually mean this kind of problem, so these are the first questions I should ask, and these are the next actions I should take.” 

             

            Scenario 1: DSO is high, but Best Possible DSO is close to terms 

            Example 

            • Terms: 30 days  
            • DSO: 55 days  
            • Best Possible DSO: 31 days  
            • Overdue ratio: high  

            What this usually means 

            This usually means your current invoices are not the main problem. 

            The main problem is that older overdue balances are dragging the whole book down. 

            Ask this first 

            • Which overdue accounts are causing most of the drag?  
            • Which customers are sitting in 60+, 90+, or older?  
            • Is the problem concentrated in a few bad accounts?  

            Do not start with this 

            • “Are all our customers paying badly?”  
            • “Do we need to change terms for everyone?”  

            Those are often the wrong first questions. 

            Better way to think 

            The current book may still be behaving reasonably. 
            The real issue is probably a separate bad-debt cluster inside the overdue book. 

            What to do next 

            Today 

            • identify the accounts causing the DSO drag  
            • separate them from routine collections  

            This week 

            • review each severe overdue account one by one  
            • decide which need recovery treatment, not normal reminder treatment  

            Management lesson 

            Do not punish the whole customer base for the behaviour of a smaller high-risk group. 

             

            Scenario 2: DSO is not terrible, but CEI is weak 

            Example 

            • Terms: 30 days  
            • DSO: 36 days  
            • CEI: 72%  

            What this usually means 

            At first glance, the book may look acceptable because DSO is not massively above terms. 

            But CEI is warning that the collections process itself is underperforming. 

            Ask this first 

            • Are we following up consistently?  
            • Are reminders going out on time?  
            • Are collectible balances being acted on quickly enough?  

            Do not start with this 

            • “DSO doesn’t look too bad, so we must be fine.”  

            That is a dangerous conclusion. 

            Better way to think 

            DSO can sometimes hide a weakening collections process. 
            CEI often reveals that the machine is losing efficiency before the full damage shows in DSO. 

            What to do next 

            Today 

            • review reminder timing and collector discipline  
            • check whether promises are being logged and followed up  

            This week 

            • review collector workflow  
            • tighten review cadence  
            • check whether disputes are being closed too slowly  

            Management lesson 

            A “not terrible” DSO can still sit on top of a weak process. 

             

            Scenario 3: Overdue ratio is high, but 90+ pressure is still low 

            Example 

            • Overdue ratio: 42%  
            • 90+ ratio: 6%  

            What this usually means 

            A lot of debt is late, but much of it has not yet hardened into severe age. 

            That means there may still be a strong chance to regain control internally. 

            Ask this first 

            • What is driving the recent slippage?  
            • Is invoicing late?  
            • Are disputes slowing payment?  
            • Are reminders not happening quickly enough?  

            Do not start with this 

            • “We need legal action immediately.”  

            Not yet. The debt may still be in a recoverable internal stage. 

            Better way to think 

            This is often a window of opportunity. 
            If the team acts firmly now, the book may be recoverable before it ages further. 

            What to do next 

            Today 

            • tighten current overdue follow-up  
            • isolate 30+, 60+, and borderline severe accounts  

            This week 

            • fix process leaks  
            • review disputes  
            • review statement timing  
            • review proof-of-delivery timing  

            Management lesson 

            When overdue is high but 90+ is still low, speed matters more than force. 

             

            Scenario 4: 90+ pressure is high, and documentation is strong 

            Example 

            • 90+ ratio: 21%  
            • Docs readiness: 90%  
            • Escalation readiness: 84%  

            What this usually means 

            This usually means the book is already under meaningful severe-arrears pressure, but the file is strong enough for firmer action. 

            Ask this first 

            • Which severe accounts are most commercially important?  
            • Which files are complete enough to move quickly?  
            • Which promises have already failed?  

            Do not start with this 

            • “Let’s keep sending one more friendly reminder.”  

            That may just waste time. 

            Better way to think 

            The real question is no longer “Do we have enough paperwork?” 
            The real question is “Why are we still waiting?” 

            What to do next 

            Today 

            • build the escalation list  
            • rank the accounts by size, age, and likelihood of recovery  

            This week 

            • complete final internal review  
            • decide which matters deserve stronger action or handover review  

            Management lesson 

            Strong documentation plus severe age usually means delay is becoming a choice, not a necessity. 

             

            Scenario 5: Promise kept rate is low 

            Example 

            • Promises tracked: 10  
            • Broken promises: 5  
            • Promise kept rate: 50%  

            What this usually means 

            The debtor is telling you one thing and doing another. 

            This usually means the promise process is no longer a control tool. It may now be a delay tool. 

            Ask this first 

            • Are we allowing vague promises?  
            • Are we following up same day when promises break?  
            • Are repeat offenders still being treated too softly?  

            Do not start with this 

            • “Maybe they just need more time.”  

            Maybe. But the data is telling you not to assume that. 

            Better way to think 

            A promise is useful only if it changes behaviour. 
            If it does not change behaviour, it should change your strategy. 

            What to do next 

            Today 

            • require exact dates and amounts for all promises  
            • follow up broken promises immediately  

            This week 

            • flag repeat promise breakers  
            • move them closer to escalation  
            • stop accepting endless rolling commitments  

            Management lesson 

            A promise without consequence is not control. 

             

            Scenario 6: Disputed amount is high 

            Example 

            • Overdue: R500,000  
            • Disputed: R140,000  
            • Dispute ratio: 28%  

            What this usually means 

            A major part of the overdue book may be stuck because of unresolved operational issues, or because the debtor is using disputes as cover for delay. 

            Ask this first 

            • Are these genuine disputes?  
            • Which team owns each dispute?  
            • What proof is missing?  
            • How long has each dispute been unresolved?  

            Do not start with this 

            • “Collections just needs to chase harder.”  

            Not if the delay is actually being created upstream by operations, sales, logistics, or admin. 

            Better way to think 

            A dispute-heavy book is often not just a collections problem. 
            It may be a cross-functional execution problem. 

            What to do next 

            Today 

            • create a dispute register with owner and deadline  
            • separate real disputes from weak excuses  

            This week 

            • assign accountability  
            • close evidence gaps  
            • stop letting disputes remain vague and open-ended  

            Management lesson 

            If disputes stay unresolved, collections becomes slower even when collectors work hard. 

             

            Scenario 7: Top-5 concentration is high 

            Example 

            • Top-5 concentration: 62%  
            • Largest debtor: 18%  
            • Overall overdue ratio: moderate  

            What this usually means 

            Your book may not look terrible overall, but your liquidity is too dependent on a small number of customers. 

            Ask this first 

            • Which of the top 5 are already showing stress?  
            • Are we too commercially dependent on them?  
            • Are their terms still appropriate?  

            Do not start with this 

            • “The rest of the ledger looks diversified enough.”  

            That misses the real concentration problem. 

            Better way to think 

            The issue is not just average debtor quality. 
            The issue is what happens if one or two major payers stall. 

            What to do next 

            Today 

            • review the top 5 separately from the rest of the book  
            • put them on management watch  

            This week 

            • review terms, limits, and dependency  
            • consider tighter oversight on large exposures  

            Management lesson 

            A debtor book can look statistically acceptable but still be strategically dangerous. 

             

            Scenario 8: DSO is improving, but 90+ is not 

            Example 

            • DSO slightly better than last month  
            • 90+ bucket unchanged or worsening  

            What this usually means 

            You may be collecting better on newer balances, but the hard core of old debt is not moving. 

            Ask this first 

            • Are we improving current collections while ignoring the oldest accounts?  
            • Are severe accounts getting enough specialist attention?  

            Do not start with this 

            • “Great, DSO improved, so the problem is fixed.”  

            Not necessarily. 

            Better way to think 

            The book may be splitting into two stories: 

            • better routine collections  
            • stuck severe debt  

            What to do next 

            Today 

            • identify which old accounts are not improving  
            • remove them from standard cycle treatment  

            This week 

            • create a severe-arrears list  
            • set specific action per account  

            Management lesson 

            Improving averages can hide a stubborn recovery problem underneath. 

             

            Scenario 9: Documentation readiness is weak, but urgency is high 

            Example 

            • Docs readiness: 52%  
            • 90+ ratio: 19%  
            • Promise kept rate: weak  
            • Urgency: high  

            What this usually means 

            The problem is serious, but the file may not be ready for strong action yet. 

            Ask this first 

            • What exactly is missing?  
            • Who can get it?  
            • How quickly can the gaps be closed?  

            Do not start with this 

            • “Let’s escalate now and hope the documents can follow later.”  

            That weakens leverage. 

            Better way to think 

            You may be right to escalate emotionally, but you still need to escalate well. 

            What to do next 

            Today 

            • list all missing file items  
            • assign owners and deadlines  

            This week 

            • close the most important proof gaps first  
            • tighten communication notes  
            • confirm balances and contacts  

            Management lesson 

            Urgency without preparation creates weak escalation. 

             

            Scenario 10: Escalation readiness is high, but the team is still hesitating 

            Example 

            • Docs readiness: 88%  
            • Escalation readiness: 82%  
            • 90+ ratio: high  
            • Broken promises: repeated  

            What this usually means 

            The numbers suggest the business may already have enough information to act, but is still psychologically stuck in “routine chasing mode.” 

            Ask this first 

            • What exactly are we waiting for?  
            • Is there any real missing information?  
            • Or are we simply uncomfortable escalating?  

            Do not start with this 

            • “Maybe one more call will change things.”  

            If the pattern is already clear, that may be false hope. 

            Better way to think 

            The business may not have an information problem. 
            It may have a decision problem. 

            What to do next 

            Today 

            • review the file for decision readiness  
            • identify whether any missing item is truly material  

            This week 

            • make a decision  
            • stop drifting  

            Management lesson 

            A prepared file should lead to a prepared decision. 

             

            Scenario 11: Low overdue ratio, but high ADD 

            Example 

            • Overdue ratio: 18%  
            • ADD: 14 days  

            What this usually means 

            A relatively small part of the book is overdue, but the overdue part that exists is meaningfully late. 

            Ask this first 

            • Is the issue concentrated in a few accounts?  
            • Are the overdue accounts being left too long before action?  

            Do not start with this 

            • “Only a small share is overdue, so it’s fine.”  

            That misses the severity of the lateness. 

            Better way to think 

            Small size does not always mean small risk. 

            What to do next 

            Today 

            • review the actual aged overdue list  
            • focus on depth of lateness, not just total proportion  

            This week 

            • identify whether specific customers are recurring slow payers  
            • tighten escalation triggers on those accounts  

            Management lesson 

            A smaller overdue book can still contain serious slow-paying behaviour. 

             

            Scenario 12: CEI is strong, but cost of inaction is still high 

            Example 

            • CEI: 91%  
            • Monthly cost of inaction: high  
            • Trapped cash: high  

            What this usually means 

            Your collections process may be doing many things right, but the size of the overdue book is still big enough to create real cash-flow pressure. 

            Ask this first 

            • Is the issue scale rather than discipline?  
            • Are a few large balances creating too much working-capital drag?  

            Do not start with this 

            • “CEI is strong, so there’s nothing to fix.”  

            That is incomplete thinking. 

            Better way to think 

            A good process can still sit on top of an uncomfortably large exposure. 

            What to do next 

            Today 

            • isolate the biggest overdue balances  
            • review them from a working-capital perspective  

            This week 

            • consider whether terms, limits, or collection escalation need refinement for large exposures  

            Management lesson 

            Good collections effort does not automatically mean low cash-flow risk. 

             

            Scenario 13: Promise kept rate looks fine, but days since last payment is long 

            Example 

            • Promise kept rate: 82%  
            • Days since last payment: 47  

            What this usually means 

            This may mean one of two things: 

            • the promise data is incomplete  
            • the promises being kept are too small or too irregular to reduce real risk  

            Ask this first 

            • Are we counting “kept” promises correctly?  
            • Are the payments meaningful?  
            • Is the customer paying enough, or just enough to buy time?  

            Do not start with this 

            • “The promise kept rate is good, so the debtor is healthy.”  

            That may be misleading. 

            Better way to think 

            The quality of payment matters, not just whether some payment happened. 

            What to do next 

            Today 

            • review actual payment value against outstanding balance  
            • assess whether the kept payments are commercially meaningful  

            This week 

            • strengthen promise criteria  
            • do not count tiny token payments as success if the balance barely moves  

            Management lesson 

            A technically “kept” promise can still be operationally weak. 

             

            Scenario 14: Gross margin is low, trapped cash is high 

            Example 

            • Gross margin: 18%  
            • Trapped cash: high  
            • Replacement sales required: very high  

            What this usually means 

            The business would need a very large amount of new sales to replace the value currently trapped in slow debtors. 

            Ask this first 

            • Is management fully aware of the sales effort needed to replace this trapped value?  
            • Are we treating collections as seriously as sales?  

            Do not start with this 

            • “We’ll make it up with more sales.”  

            That is often much harder than people think. 

            Better way to think 

            On low margins, slow collections are especially painful because replacement turnover requirements become very large. 

            What to do next 

            Today 

            • highlight the replacement-sales figure to management  
            • use it to increase urgency  

            This week 

            • review whether key slow payers are receiving too much commercial leniency  

            Management lesson 

            Low margin businesses can afford weak debtor control even less. 

             

            Scenario 15: The calculator gives mixed signals 

            Example 

            • DSO: moderate  
            • CEI: moderate  
            • overdue ratio: moderate  
            • 90+: low  
            • docs: low  
            • promises: mixed  

            What this usually means 

            The business may not be in crisis, but control is not as strong as it should be. 

            Ask this first 

            • Which weakness is easiest to improve quickly?  
            • What single correction would give the fastest lift?  

            Do not start with this 

            • “Nothing looks terrible, so let’s leave it.”  

            That is how books quietly deteriorate. 

            Better way to think 

            Mixed signals often mean you are standing at the beginning of a larger problem, not the end of one. 

            What to do next 

            Today 

            • pick the clearest weak point  
            • correct it immediately  

            This week 

            • run the calculator again after process improvements  
            • compare the movement  

            Management lesson 

            Small weaknesses compound when ignored. 

             

            Practical “Ask This, Not That” Coaching Section 

            This is a very useful section to add because it teaches judgment. 

            When DSO is high 

            Ask this: 
            Which balances are dragging the average? 

            Not this: 
            Why is every customer paying badly? 

             

            When CEI is weak 

            Ask this: 
            Is our collections process missing timing, focus, or discipline? 

            Not this: 
            Should we just blame the economy? 

             

            When 90+ is rising 

            Ask this: 
            Which accounts need a different treatment from routine reminders? 

            Not this: 
            Should we just keep sending more statements? 

             

            When promises are breaking 

            Ask this: 
            Are promises still a control tool, or just a delay tool? 

            Not this: 
            Should we keep trusting verbal commitments? 

             

            When disputes are high 

            Ask this: 
            What operational bottleneck is preventing closure? 

            Not this: 
            Why aren’t collectors pushing harder? 

             

            When docs readiness is weak 

            Ask this: 
            What exact file items are missing, and who will close them? 

            Not this: 
            Can we just escalate and see what happens? 

             

            When top-5 concentration is high 

            Ask this: 
            What happens if one or two major accounts stall? 

            Not this: 
            Is the average debtor balance acceptable? 

             

            When cost of inaction is high 

            Ask this: 
            What is this delay costing us every month? 

            Not this: 
            Can we afford to wait a little longer? 

             

            A simple hand-holding decision path 

            The user can follow this in order every time: 

            Step 1 

            Look at: 

            • DSO  
            • ADD  
            • Best Possible DSO  

            Ask: 

            • Is the problem general, or mostly overdue drag?  

            Step 2 

            Look at: 

            • CEI  
            • Promise kept rate  

            Ask: 

            • Is our collections process actually converting intent into cash?  

            Step 3 

            Look at: 

            • overdue ratio  
            • 90+ pressure  
            • disputed amount  

            Ask: 

            • Is this still manageable internally, or is it hardening?  

            Step 4 

            Look at: 

            • docs readiness  
            • escalation readiness  

            Ask: 

            • Are we ready for stronger action if needed?  

            Step 5 

            Look at: 

            • top-5 concentration  
            • largest debtor  

            Ask: 

            • Could a small number of customers materially affect liquidity?  

            Step 6 

            Look at: 

            • monthly cost of inaction  
            • trapped cash  
            • replacement sales impact  

            Ask: 

            • Can the business really afford further delay?  

             

            A final teaching note to include in the manual 

            A beginner should be taught this sentence: 

            A good collections decision is not based on one number. It is based on the pattern created by speed, ageing, behaviour, readiness, concentration, and cost. 

            These examples are fictional, but they are designed to feel realistic. Each one teaches the reader how to interpret a pattern, not just a number. 

            The goal is to train the user to think like this: 

            • What story are the numbers telling?  
            • What is the real problem?  
            • What should I do first?  
            • What should I not waste time on?  

             

            Case Study 1: The Healthy Book That Still Needs Discipline 

            Business type 

            Wholesale office supplies business 

            Snapshot 

            • Terms: 30 days  
            • DSO: 31 days  
            • ADD: 1 day  
            • Best Possible DSO: 28 days  
            • CEI: 95%  
            • Overdue ratio: 14%  
            • 90+ ratio: 3%  
            • Promise kept rate: 89%  
            • Top-5 concentration: 29%  
            • Docs readiness: 92%  
            • Escalation readiness: 88%  

            What the numbers are saying 

            This is a healthy book. 

            Collections are close to terms. Overdue pressure is modest. Severe age is low. Payment promises are mostly reliable. Documentation is strong. The business appears to have good debtor-control discipline. 

            The real lesson 

            A healthy book still needs management attention. Healthy books become unhealthy books when discipline becomes casual. 

            Ask this first 

            • What are we doing right that we must keep doing?  
            • Which routines are protecting this performance?  

            Do not start with this 

            • “Everything looks good, so we can relax.”  

            What to do next 

            Today 

            • keep statement runs and reminder timing exact  
            • continue documenting promises and collector notes  

            This week 

            • review the small number of overdue accounts before they age  
            • protect current performance  

            Final management conclusion 

            This business does not need stronger force. It needs consistent discipline. 

             

            Case Study 2: The Book That Is Drifting Quietly 

            Business type 

            Building materials supplier 

            Snapshot 

            • Terms: 30 days  
            • DSO: 41 days  
            • ADD: 11 days  
            • Best Possible DSO: 29 days  
            • CEI: 84%  
            • Overdue ratio: 33%  
            • 90+ ratio: 7%  
            • Promise kept rate: 73%  
            • Top-5 concentration: 38%  
            • Docs readiness: 82%  
            • Escalation readiness: 71%  

            What the numbers are saying 

            The current book is not the main problem. Best Possible DSO is near terms. The real issue is that overdue balances are starting to drag the book. 

            This is not yet a severe-arrears crisis, but it is no longer “fine.” 

            Ask this first 

            • Which overdue accounts are causing the drag?  
            • Which customers are slipping repeatedly?  

            Do not start with this 

            • “We should change terms for everybody.”  

            What to do next 

            Today 

            • isolate the overdue accounts causing most of the delay  
            • review collectors’ follow-up timing  

            This week 

            • separate 30+, 60+, and repeat offenders  
            • tighten promise tracking  
            • review whether a few key customers are being treated too gently  

            Final management conclusion 

            This is a drift problem, not yet a deep recovery problem. Act early. 

             

            Case Study 3: The Book With a Serious Dispute Bottleneck 

            Business type 

            Engineering services company 

            Snapshot 

            • Terms: 30 days  
            • DSO: 49 days  
            • ADD: 19 days  
            • Best Possible DSO: 32 days  
            • CEI: 79%  
            • Overdue ratio: 39%  
            • 90+ ratio: 10%  
            • Promise kept rate: 76%  
            • Disputed amount: high  
            • Top-5 concentration: 41%  
            • Docs readiness: 68%  
            • Escalation readiness: 58%  

            What the numbers are saying 

            This book is under pressure, but the biggest problem may not be collections discipline alone. A large dispute load suggests that operations, delivery proof, job completion evidence, or invoice queries may be slowing payment. 

            Ask this first 

            • Are these genuine disputes or delay tactics?  
            • Who owns dispute resolution?  
            • Which documents are missing?  

            Do not start with this 

            • “Collections must just push harder.”  

            What to do next 

            Today 

            • create a dispute register  
            • assign owner and deadline to every dispute  

            This week 

            • close the biggest document gaps  
            • separate genuine disputes from weak excuses  
            • review whether disputed accounts are still being treated like normal late payers  

            Final management conclusion 

            This is a cross-functional control problem, not just a credit-control problem. 

             

            Case Study 4: The Concentration Risk Book 

            Business type 

            Specialist manufacturer 

            Snapshot 

            • Terms: 45 days  
            • DSO: 51 days  
            • ADD: 6 days  
            • Best Possible DSO: 43 days  
            • CEI: 88%  
            • Overdue ratio: 24%  
            • 90+ ratio: 6%  
            • Promise kept rate: 82%  
            • Largest debtor: 19% of book  
            • Top-5 concentration: 63%  
            • Docs readiness: 90%  
            • Escalation readiness: 84%  

            What the numbers are saying 

            On the surface, the book is not terrible. But the concentration risk is high. The business is too dependent on a few large customers. 

            Ask this first 

            • Which top-5 customers could materially affect cash flow if they slow down?  
            • Are those customers already receiving too much leniency?  

            Do not start with this 

            • “The average debtor behaviour looks acceptable.”  

            What to do next 

            Today 

            • review the top-5 debtors separately from the rest  
            • place them on management watch  

            This week 

            • review credit limits, commercial dependency, and terms  
            • prepare contingency thinking for a delayed large payer  

            Final management conclusion 

            This is not mainly a collections-efficiency problem. It is a strategic exposure problem. 

             

            Case Study 5: The Promise Problem 

            Business type 

            Logistics business 

            Snapshot 

            • Terms: 30 days  
            • DSO: 47 days  
            • ADD: 17 days  
            • Best Possible DSO: 34 days  
            • CEI: 81%  
            • Overdue ratio: 37%  
            • 90+ ratio: 12%  
            • Promises tracked: 14  
            • Broken promises: 7  
            • Promise kept rate: 50%  
            • Docs readiness: 78%  
            • Escalation readiness: 69%  

            What the numbers are saying 

            The team is speaking to debtors, but the promises are not turning into reliable payment behaviour. The business may feel busy, but control is weak. 

            Ask this first 

            • Are we accepting vague promises?  
            • Are broken promises being followed up immediately?  
            • Are repeat promise-breakers still being treated as normal cases?  

            Do not start with this 

            • “At least they are still communicating.”  

            What to do next 

            Today 

            • require every promise to include a date and amount  
            • follow up every broken promise same day  

            This week 

            • classify repeat promise-breakers as elevated-risk accounts  
            • stop allowing endless “next Friday” behaviour  

            Final management conclusion 

            This book has a credibility problem. Promises are no longer enough. 

             

            Case Study 6: The Hardening Severe-Arrears Book 

            Business type 

            Industrial equipment supplier 

            Snapshot 

            • Terms: 30 days  
            • DSO: 58 days  
            • ADD: 28 days  
            • Best Possible DSO: 30 days  
            • CEI: 72%  
            • Overdue ratio: 46%  
            • 90+ ratio: 22%  
            • Promise kept rate: 54%  
            • Top-5 concentration: 49%  
            • Docs readiness: 87%  
            • Escalation readiness: 82%  

            What the numbers are saying 

            This is no longer a routine collections problem. Severe arrears are high, promises are weak, and the file is strong enough to move. 

            Ask this first 

            • Which severe accounts are largest?  
            • Which files are complete enough for firmer action now?  

            Do not start with this 

            • “Maybe we should give it one more normal cycle.”  

            What to do next 

            Today 

            • rank severe accounts by size, age, and recoverability  
            • identify which accounts should move first  

            This week 

            • prepare internal escalation pack  
            • decide on stronger external or formal action where justified  

            Final management conclusion 

            This is a recovery-stage problem, not just a collections-stage problem. 

             

            Case Study 7: The Weak File, High Urgency Book 

            Business type 

            SME print and signage business 

            Snapshot 

            • Terms: 30 days  
            • DSO: 54 days  
            • ADD: 24 days  
            • Best Possible DSO: 33 days  
            • CEI: 74%  
            • Overdue ratio: 43%  
            • 90+ ratio: 18%  
            • Promise kept rate: 57%  
            • Docs readiness: 51%  
            • Escalation readiness: 47%  

            What the numbers are saying 

            This book is under real pressure, but the file is weak. Even if management feels ready to escalate emotionally, the paperwork may not support strong action well. 

            Ask this first 

            • What exact supporting documents are missing?  
            • Which missing items are mission-critical?  

            Do not start with this 

            • “We’ll escalate now and sort the paperwork out later.”  

            What to do next 

            Today 

            • make a missing-documents list  
            • assign owners and deadlines  

            This week 

            • fix the file  
            • complete the statement and proof pack  
            • strengthen note-taking and contact accuracy  

            Final management conclusion 

            Urgency is high, but preparedness is too low. 

             

            Case Study 8: The Low Margin Danger Book 

            Business type 

            Food distributor 

            Snapshot 

            • Terms: 21 days  
            • DSO: 34 days  
            • ADD: 13 days  
            • Best Possible DSO: 23 days  
            • CEI: 86%  
            • Overdue ratio: 29%  
            • 90+ ratio: 8%  
            • Promise kept rate: 78%  
            • Gross margin: low  
            • Trapped cash: high  

            What the numbers are saying 

            Collections are not collapsing, but because margins are low, slow debtors are still very expensive. Replacement sales required to offset trapped value may be huge. 

            Ask this first 

            • Does management understand how much extra turnover is needed to replace trapped cash?  
            • Are we treating collections with the same urgency as sales?  

            Do not start with this 

            • “We’ll make it up on volume.”  

            What to do next 

            Today 

            • put trapped cash and replacement-sales impact in front of management  

            This week 

            • tighten large slow-paying accounts  
            • review whether low-margin accounts are receiving too much credit leniency  

            Final management conclusion 

            Low margin businesses need sharper debtor control because delay becomes expensive very quickly. 

             

            Case Study 9: The Mixed Signals Book 

            Business type 

            IT support and managed services business 

            Snapshot 

            • Terms: 30 days  
            • DSO: 38 days  
            • ADD: 8 days  
            • Best Possible DSO: 30 days  
            • CEI: 83%  
            • Overdue ratio: 26%  
            • 90+ ratio: 5%  
            • Promise kept rate: 66%  
            • Top-5 concentration: 44%  
            • Docs readiness: 80%  
            • Escalation readiness: 67%  

            What the numbers are saying 

            This book is not in crisis, but several early warning indicators are flashing: 

            • delinquency exists  
            • CEI is not strong  
            • promises are weakening  
            • concentration is moderate  

            Ask this first 

            • Which weakness is easiest to fix fastest?  
            • What is the earliest warning sign here?  

            Do not start with this 

            • “Nothing looks terrible, so it’s probably okay.”  

            What to do next 

            Today 

            • tighten promise discipline  
            • review the top-5 customers  

            This week 

            • improve timing of follow-up and internal review cadence  
            • stop the book from sliding into a harder stage  

            Final management conclusion 

            This is an early intervention opportunity. 

             

            Case Study 10: The Owner-Led Business in Denial 

            Business type 

            Owner-managed trading business 

            Snapshot 

            • Terms: 30 days  
            • DSO: 63 days  
            • ADD: 33 days  
            • Best Possible DSO: 29 days  
            • CEI: 69%  
            • Overdue ratio: 52%  
            • 90+ ratio: 24%  
            • Promise kept rate: 42%  
            • Top-5 concentration: 61%  
            • Docs readiness: 83%  
            • Escalation readiness: 79%  

            What the numbers are saying 

            This business likely already has a serious overdue problem, but may still be hoping for informal relationship-based recovery. 

            Ask this first 

            • What exactly are we waiting for?  
            • Are we being commercially disciplined or emotionally hesitant?  

            Do not start with this 

            • “They’ve been a customer for years, so let’s keep trusting them.”  

            What to do next 

            Today 

            • separate relationship thinking from risk thinking  
            • review the largest severe accounts without emotion  

            This week 

            • move from hopeful chasing to structured action  
            • escalate where behaviour and age justify it  

            Final management conclusion 

            This is a decision problem, not an information problem. 

            This section helps the reader test whether they actually understand the calculator. 

            Part A: Quick Understanding Questions 

            1. What is DSO?
            2. The total overdue balance
              B. The average number of days it takes to collect payment
              C. The amount sitting in 90+ 
              D. The number of debtors 

            Answer: B 

             

            1. What does ADD show?
            2. The number of debtors added this month
              B. Theamount of disputed invoices 
              C. How many days late payment is beyond terms 
              D. The cost of legal escalation 

            Answer: C 

             

            1. If DSO is high but Best Possible DSO is close to terms, what is the most likely issue?
            2. Current invoices are the main problem
              B. The overdue book is dragging performance
              C. Terms are too strict for all customers 
              D. Documentation is always weak 

            Answer: B 

             

            1. What is CEImainly used for? 
            2. Measuring collection effectiveness
              B. Measuring legal readiness only
              C. Measuring total gross margin 
              D. Measuring debtor concentration only 

            Answer: A 

             

            1. A high 90+ ratio usually means:
            2. The book is mostly current
              B. Older debt is becoming a more serious recovery concern
              C. DSO must be low 
              D. Promises are reliable 

            Answer: B 

             

            1. What does a low promise kept rate usually suggest?
            2. Promises are a strong control tool
              B. Promises may be becoming a delay tool
              C. Customers are all paying early 
              D. Documentation is complete 

            Answer: B 

             

            1. What doestop-5 concentration show? 
            2. The age of the five oldest invoices
              B. How much of the book is held by the top five debtors
              C. The number of disputes in the top five accounts 
              D. The five best paying debtors 

            Answer: B 

             

            1. If docs readiness is low and urgency is high, what should you usually do first?
            2. Ignore the file and escalate immediately
              B. Close the file gaps and strengthen the record
              C. Stop measuring the book 
              D. Extend terms to everyone 

            Answer: B 

             

            1. What is trapped cash?
            2. Cash physically missing from the business
              B. Working capital delayed because collections are too slow
              C. VAT paid too early 
              D. Petty cash not reconciled 

            Answer: B 

             

            1. Which question is better when CEI is weak?
            2. “Should we blame the economy?”
              B. “Is our collections process missing timing, focus, or discipline?”
              C. “Should we stop reporting?” 
              D. “Does this mean all customers are bad?” 

            Answer: B 

             

            Part B: Scenario-Based Questions 

            1. Terms are 30 days, DSO is 52 days, Best Possible DSO is 28 days. What does that suggest?

            Answer: The current book is not the main problem. The overdue book is dragging collections down. 

             

            1. Overdue ratio is high, but 90+ is still low. What is the smarter first thought?

            Answer: There may still be a window to regain control internally before the debt hardens further. 

             

            1. Promise kept rate is 48%. What is the smarter next move?

            Answer: Tighten promise discipline, require specifics, and stop allowing repeated broken promises without consequence. 

             

            1. Top-5concentration is 64%. What is the key risk? 

            Answer: A small number of debtors could materially damage cash flow if they slow down or fail to pay. 

             

            1. Escalation readiness is high, docs are strong, and 90+ is heavy. What does that usually mean?

            Answer: The file may already be strong enough for firmer action, and further waiting may be unnecessary. 

             

            Part C: Short Written Reflection Questions 

            1. Why is it dangerous to look at DSO alone?

            Suggested answer: Because DSO is an average. It can hide whether the real problem is current balances, overdue drag, concentration, or weak collection quality. 

            1. Why should a manager compare DSO with Best Possible DSO?

            Suggested answer: Because the gap helps show whether overdue debt is the real driver of poor collection performance. 

            1. Why is a strong promise kept rate not always enough by itself?

            Suggested answer: Because even if some promises are kept, the payments may be too small or too slow to solve the real risk. 

            1. Why does documentation readiness matter?

            Suggested answer: Because weak documentation reduces leverage and makes stronger recovery action slower or less effective. 

            1. Why does low gross margin make slow collections more dangerous?

            Suggested answer: Because the business may need a very large amount of new sales to replace the value trapped in overdue debt. 

             

            Pass Mark Suggestion 

            • 16–20 correct: strong understanding  
            • 11–15 correct: workable understanding, but review the terminology and scenarios again  
            • 0–10 correct: read the manual again before relying on the calculator for decisions

            This is the “one-page” version. 

             Kredcor Recovery Suite Quick-Start Guide 

            What you need before you begin 

            Get these numbers: 

            • credit sales for the period  
            • opening receivables  
            • ending receivables  
            • current receivables  
            • total overdue  
            • 90+ bucket  
            • largest debtor  
            • top 5 combined debtor balances  
            • tracked promises  
            • broken promises  
            • disputed amount  
            • days since last payment  
            • cost of capital  
            • internal collection cost  
            • gross margin  
            • supporting documents status  

             

            What to enter 

            Enter your period correctly 

            Use the same time frame for: 

            • sales  
            • opening book  
            • closing book  

            Enter your terms 

            Use the actual agreed customer terms. 

            Enter current and overdue carefully 

            These numbers drive DSO, Best Possible DSO, overdue ratio, and severe-age analysis. 

            Enter promise numbers honestly 

            Do not count vague conversations as solid promises. 

            Tick documentation accurately 

            Do not tick boxes just because you think you can find the documents later. 

             

            What to read first after calculating 

            1. DSO

            How long, on average, are you taking to collect? 

            1. ADD

            How late are customers paying beyond terms? 

            1. Best Possible DSO

            Is the real problem current behaviour or overdue drag? 

            1. CEI

            Is your collection process actually converting receivables into cash? 

            1. Overdue ratio and 90+ pressure

            How much of the book is late, and how much is severe? 

            1. Promise kept rate

            Are promises reliable, or are they becoming excuses? 

            1. Top-5concentration 

            Is too much of the book sitting with too few debtors? 

            1. Docsreadiness and escalation readiness 

            Are you truly prepared for stronger action if needed? 

             

            Simple interpretation guide 

            If DSO is high and Best Possible DSO is near terms 

            Focus on the overdue book. 

            If CEI is weak 

            Focus on collections discipline and timing. 

            If overdue ratio is high but 90+ is low 

            Act quickly now before the book hardens. 

            If 90+ is high 

            Treat it as a serious recovery warning. 

            If promise kept rate is low 

            Stop relying on promises alone. 

            If top-5 concentration is high 

            Put major accounts on management watch. 

            If docs readiness is low 

            Strengthen the file before escalating. 

            If escalation readiness is high and urgency is high 

            Stop drifting and make a decision. 

             

            Questions to ask in the right order 

            Ask these first 

            • Which balances are dragging the book?  
            • Is the problem routine lateness or severe aging?  
            • Are promises working?  
            • Are disputes blocking payment?  
            • Is the file ready for firmer action?  
            • Are a few debtors creating too much risk?  

            Ask these later 

            • Should we change every customer’s terms?  
            • Should we assume the whole market is the problem?  
            • Should we wait another cycle just because the customer is familiar?  

             

            What to do today 

            • isolate the biggest overdue balances  
            • review the oldest accounts  
            • check broken promises  
            • check disputes  
            • identify missing file items  
            • review top-5 debtor exposures  

             

            What to do this week 

            • hold an aged-debt review  
            • assign owners to severe accounts and disputes  
            • tighten promise discipline  
            • prepare escalation-ready files where justified  
            • compare this month’s results to last month  

             

            When to get management involved quickly 

            Escalate management attention when: 

            • ADD is high  
            • CEI is weak  
            • 90+ is rising  
            • promises are repeatedly broken  
            • top-5 concentration is high  
            • trapped cash is large  
            • cost of inaction is becoming painful  

             

            One sentence to remember 

            Do not read one number by itself. Read the pattern created by collection speed, aging, behaviour, readiness, concentration, and cost. 

             

            One helpful note at the start: exact menu names can vary by accounting package, edition, country, and subscription tier. The safest method is always to search inside the software for terms like Aged Receivables, A/R Ageing, Aged Debtors, Customer Balance, Receivable Invoice Detail, or Who owes you. In current official help, QuickBooks Online shows A/R ageing reports under Reports > Standard reports > Who owes you, Xero provides Aged Receivables Summary and Aged Receivables Detail, and Sage guidance commonly points users to Customers > Reports > Aged debtors or Reporting > All reports > Aged Debtors, depending on the Sage product line. 

            This section helps the user answer the most practical beginner question: 

            “I understand what the calculator wants, but where do I actually get the numbers?” 

            Start with these three golden rules 

            Rule 1: Use one time period only 

            If you are calculating for March, then use: 

            March credit sales 

            opening receivables at the start of March 

            ending receivables at the end of March 

             Do not mix a monthly sales figure with a quarterly aged-debt report. 

            Rule 2: Use your aged receivables report as your main source 

            For most users, the aged receivables or aged debtors report is the most important source because it usually gives: 

            current balances 

            overdue balances 

            30, 60, 90+ ageing buckets 

            customer-by-customer balances 

            This is why QuickBooks, Xero, and Sage all document aged receivables / aged debtors reports as core customer-debt reports. 

            Rule 3: Always use the same report date 

             If your aged receivables report is run at month-end, make sure your opening and ending balances and your sales period align to that same cut-off date. QuickBooks’ own matching guidance emphasizes running ageing reports with the correct report date settings, and Sage also highlights reconciling aged debtors back to control accounts and balances when things do not agree. 

             The easiest way to gather the numbers 

            Number 1: Credit sales for period 

             Look for a sales or receivable invoice detail report for the period. 

             Good places to look: 

            sales by customer report 

            receivable invoice detail report 

            customer invoice report 

            sales report filtered to credit sales only 

            Xero’s Receivable Invoice Detail report is a good example of the kind of report that shows sales invoice details for a period. 

            Number 2: Opening receivables 

            Take the total receivables balance at the start of the period. 

             Usually found in: 

            prior month aged receivables report 

            prior month customer balance summary 

            debtors control / AR control report 

            Number 3: Ending receivables 

             Take the total receivables balance at the end of the period. 

            Usually found in: 

            current month aged receivables report 

            customer balance summary 

            debtors control account 

            Number 4: Ending current receivables 

             This is the amount in the Current column of the aged receivables report. 

             QuickBooks’ A/R ageing summary and detail reports and Xero’s Aged Receivables reports are exactly the kind of reports that show how long balances have been outstanding. 

             Number 5: Total overdue balance 

             This is usually the sum of all overdue columns: 

             1–30 

            31–60 

            61–90 

            90+ 

            Number 6: 90+ bucket 

             This is the balance specifically in the 90+ column. 

             Number 7: Largest debtor exposure 

             Sort the aged receivables report by balance and take the highest customer balance. 

             Number 8: Top 5 debtor combined exposure 

             Sort the report by balance, take the top five customers, and add them together. 

             Number 9: Total promises tracked 

             This usually does not come from the accounting package directly.  

            It usually comes from: 

            the credit controller’s follow-up sheet 

            CRM notes 

            a promise-to-pay spreadsheet 

            a collections notebook or task list 

             Number 10: Broken promises 

            This also normally comes from internal collections records, not from the accounting system automatically. 

             Number 11: Disputed amount 

            Use: 

            dispute register 

            customer query list 

            collections notes 

            customer-service issue log 

             Number 12: Days since last payment 

             Open the customer ledger or transaction history and find the last payment date. 

             Number 13: Annual cost of capital 

             This usually comes from finance management, not the accounting package. Use a practical business estimate. 

            Number 14: Monthly internal collection cost 

            This is usually an internal estimate based on staff time, call cost, admin cost, and management time. 

            Number 15: Monthly deterioration on 90+ bucket 

            This is a management estimate. It is not something most accounting systems will calculate automatically. 

             Number 16: External recovery fee 

             Use the fee assumption you want to model. 

             Number 17: Escalation / legal reserve 

            USe a conservative internal estimate. 

            Number 18: Gross margin 

            Use management accounts, gross profit reporting, or product-group margin reports. 

             What it looks like in common accounting systems 

            QuickBooks Online 

             QuickBooks’ South Africa help currently shows A/R ageing reports under Reports > Standard reports > Who owes you, with both Accounts receivable ageing summary and Accounts receivable ageing detail available. The detail report is useful when you need to see which customers have past-due balances and how long each transaction is overdue. 

             Practical QuickBooks workflow 

            Open the A/R ageing summary report. 

            Write down: 

            total receivables 

            current 

            overdue 

            90+ 

            Open the detail report if you need: 

            largest debtor 

            top 5 debtors 

            invoice-level review 

            Run a sales or invoice detail report for the same period to get credit sales. 

            Use customer transaction history for last payment date. 

             Beginner tip 

            If the ageing report “looks wrong,” check the report date and ageing settings first. QuickBooks’ own help on matching ageing reports emphasizes report-date settings when reconciling. 

             Xero 

             Xero’s official help states that: 

             Aged Receivables Summary shows the amounts customers owe and how long payments have been outstanding 

            Aged Receivables Detail shows outstanding invoices, credit notes, overpayments, and how long they have gone unpaid 

            Receivable Invoice Detail is used to view details of sales invoices and related receivable items for a chosen period. 

             

            Practical Xero workflow 

            Run Aged Receivables Summary. 

            Capture: 

            total receivables 

            current 

            overdue buckets 

            90+ 

             

            Run Aged Receivables Detail. 

            Sort by customer or amount to identify: 

            largest debtor 

            top 5 combined exposure 

            Run Receivable Invoice Detail for the period to estimate credit sales. 

            Open the customer account to check last payment date. 

             

            Beginner tip 

            Use the Summary report for totals and the Detail report for debtor-by-debtor investigation. 

             

            Sage 

            Sage’s current knowledge base shows Aged debtors reporting under Customers > Reports > Aged debtors for some Sage products, and under Reporting > All reports > Aged Debtors for others. Sage also notes that the aged debtors report lists outstanding customer invoices and unallocated customer transactions, and it provides reconciliation guidance where aged debtors does not match the control account, trial balance, or balance sheet. 

             

            Practical Sage workflow 

            Run the Aged Debtors report. 

            Capture: 

            total debtors 

            current 

            overdue 

            90+ 

             

            Use the report or a customer list to identify: 

            largest debtor 

            top 5 combined 

            Use customer transaction history for last payment date. 

            Use sales invoice reports for credit sales. 

             

            Beginner tip 

            If Sage balances do not match what you expect, stop and reconcile first. Sage explicitly flags reconciliation between aged debtors and control/balance reports as a common support need. 

             

            If the user is not on QuickBooks, Xero, or Sage 

             

            Tell them to search inside the software for these report names: 

             

            Aged receivables 

            A/R ageing 

            Aged debtors 

            Customer balance summary 

            Customer balance detail 

            Receivable invoice detail 

            Customer ledger 

            Invoice ageing 

            Who owes you 

             

            If they still cannot find the numbers, they should ask their bookkeeper or accountant for: 

            month-end aged receivables report 

            sales by customer for the month 

            top debtor list 

            last payment dates 

             

            Mini “where do I find it?” table 

             

            Calculator field 

            Best report or source 

            Credit sales for period 

            Sales report / receivable invoice detail 

            Opening receivables 

            Prior period aged receivables 

            Ending receivables 

            Current aged receivables 

            Current receivables 

            Current column on aged receivables 

            Total overdue 

            Sum of overdue columns 

            90+ bucket 

            90+ column 

            Largest debtor 

            Sorted aged receivables detail 

            Top 5 combined 

            Top five balances from aged receivables 

            Total promises 

            Collections tracker 

            Broken promises 

            Collections tracker 

            Disputed amount 

            Dispute register / notes 

            Days since last payment 

            Customer ledger / transaction history 

            Gross margin 

            Management accounts 

            Cost of capital 

            Finance estimate 

            Internal collection cost 

            Internal management estimate 

            This is the section you can give to users as a repeatable monthly discipline tool. 

             

            Monthly debtor-control review worksheet 

            Step 1: Basic period details 

            Month being reviewed: __________ 

            Prepared by: __________ 

            Review date: __________ 

            Terms used for the calculator: __________ days 

             

            Step 2: Enter the raw numbers 

            Credit sales for period: __________ 

            Opening receivables: __________ 

            Ending receivables: __________ 

            Ending current receivables: __________ 

            Total overdue balance: __________ 

            90+ day bucket: __________ 

            Largest debtor exposure: __________ 

            Top 5 debtor combined exposure: __________ 

            Active debtor accounts: __________ 

            Total promises tracked: __________ 

            Broken promises: __________ 

            Disputed amount: __________ 

            Days since last payment: __________ 

            Annual cost of capital: __________ % 

            Monthly internal collection cost: __________ 

            Monthly deterioration on 90+ bucket: __________ % 

            External recovery fee: __________ % 

            Escalation / legal reserve: __________ 

            Gross margin: __________ % 

             

            Step 3: Documentation checklist 

            Signed credit application: yes / no 

            Invoices and statement of account: yes / no 

            Delivery proof / PO / job card: yes / no 

            Accepted terms / contract: yes / no 

            Communication and demand trail: yes / no 

            Correct debtor contact details: yes / no 

             

            Step 4: Copy the calculator outputs 

            DSO: __________ 

            ADD: __________ 

            Best Possible DSO: __________ 

            CEI: __________ 

            Overdue ratio: __________ 

            90+ pressure: __________ 

            Promise kept rate: __________ 

            Top-5 concentration: __________ 

            Recovery probability: __________ 

            Documentation readiness: __________ 

            Escalation readiness: __________ 

            Expected net recovery: __________ 

            Cash trapped above terms: __________ 

            Monthly cost of inaction: __________ 

            90-day cost of inaction: __________ 

            Debtor control score: __________ 

             

            Step 5: Write the story in one paragraph 

             

            What do the numbers appear to be saying this month? 

             

            Step 6: Top 5 questions for this month 

            Which balances are dragging the book? 

            Is the problem current-book drift or older overdue drag? 

            Are payment promises still credible? 

            Are disputes slowing collection? 

            Is the file ready if stronger action is needed? 

            Step 7: Top 5 actions for the next 7 days 

            Step 8: Management escalation decision 

             

            Is stronger management attention needed? 

            yes / no 

             

            Is external recovery review needed? 

            yes / no 

             

            What must happen before that? 

             

            Step 9: Compare with last month 

             

            What improved? 

             

            What worsened? 

             

            What is the biggest unresolved risk? 

             

            How to use the worksheet well 

             

            For a debtors clerk 

            Focus on: 

            collecting the correct input data 

            promise tracking 

            dispute tracking 

            top account notes 

             

            For a credit manager 

            Focus on: 

            patterns 

            repeat offenders 

            severe arrears 

            top-5 concentration 

            action ownership 

             

            For a CFO or owner 

            Focus on: 

            trapped cash 

            cost of inaction 

            concentration risk 

            recovery readiness 

            management decision timing 

            This is the “I need to explain the situation clearly to management” section. 

             

            Monthly debtor-control manager report template 

            Title 

             Debtor Control and Recovery Readiness Summary — [Month / Period] 

             

            1. Executive summary

             

            This month’s calculator output suggests that the debtor book is currently in a [healthy / drifting / pressured / severe] state. DSO is [x] days against terms of [y] days, CEI is [z]%, and [a]% of the book is overdue. The 90+ bucket stands at [b]% of the ledger, which indicates [contained / moderate / elevated / severe] older-debt pressure. Estimated trapped cash above terms is [R___], with an estimated monthly cost of inaction of [R___]. 

             

            1. Whatappears to be happening 

             

            The numbers suggest that the main issue is: 

             current-book drift 

             older overdue drag 

             weak promise discipline 

             high dispute friction 

             concentration risk 

             weak file strength 

             mixed factors 

             Short explanation: 

             

            1. Key warning signs

            DSO vs terms: __________________________________ 

            ADD: _________________________________________ 

            CEI: __________________________________________ 

            Overdue ratio: _________________________________ 

            90+ ratio: ____________________________________ 

            Promise kept rate: _____________________________ 

            Top-5 concentration: ____________________________ 

            Escalation readiness: ___________________________ 

             

            1. Commercial impact

            The likely commercial impact is: 

            slower cash conversion 

            working-capital strain 

            higher management time drain 

            increased severe-age pressure 

            possible weakening of recovery outcomes 

            concentration risk if key debtors delay further 

             

            1. Top accounts or risk clusters needing attention
            2. Immediate actions recommended

            Today / next 48 hours 

            Within 7 days 

             

            1. Escalation view

             

            The calculator suggests that stronger action is: 

             not required yet 

             should be prepared 

             should be seriously considered now 

             is likely already justified 

             

            Reason: 

             

            1. What management needs to decide

             

            Management needs to decide: 

            whether to tolerate further delay 

            whether to tighten treatment of top-risk accounts 

            whether to move certain accounts out of routine collections 

            whether to approve stronger escalation steps 

             

            1. Prepared by

            Name: ____________________ 

            Role: ____________________ 

            Date: ____________________ 

             

            How to speak about the result in a management meeting 

             

            A good manager should say things like: 

            “The issue is not the whole book equally; it is concentrated in a smaller high-risk cluster.” 

            “The current book is closer to terms than the full DSO suggests, so overdue drag is the core problem.” 

            “Promise reliability is weakening, so verbal commitments are not enough.” 

            “The file is almost ready, but documentation gaps still need to be closed before stronger action.” 

            “The cost of waiting is now meaningful enough that this should receive management attention.” 

             

            A weaker way to speak would be: 

            “Collections is struggling.” 

            “Customers are paying badly.” 

            “The economy is bad.” 

            “We just need more follow-up.” 

             

            The stronger language is better because it is specific and action-oriented. 

            This section is extremely practical because users hear these phrases every day. 

            Important: an objection does not always mean the debtor is dishonest. But it usually means the collector should stop reacting emotionally and start diagnosing the real issue. 

            Objection 1: “Please resend the invoice.” 

            What it may mean: 

            They genuinely do not have it 

            They are buying time 

            Their internal process is poor 

            Your invoice delivery process may be weak 

            Better question 

            “Has the invoice now been received, and what exact date will payment be made?” 

             Do not stop at 

             “Sure, I’ll resend it.” 

             What to do next 

            resend immediately 

            ask for confirmation of receipt 

            get the name of the person who received it 

            confirm payment date in writing 

             Objection 2: “We are waiting for the POD / signed delivery note.” 

            What it may mean 

            Genuine documentation requirement 

            Internal excuse for delay 

            Your own file may be incomplete 

             Better question: 

            “Who exactly needs it, and by when can they confirm payment once it is received?” 

             What to do next 

            send the POD immediately 

            ask whether anything else is missing 

            confirm whether this fully resolves the hold-up 

            Objection 3: “The buyer hasn’t signed off yet.” 

            What it may mean 

            Internal approval delay 

            Slow internal process 

            Soft resistance to paying now 

            Better question 

            “When is sign-off expected, and who is the approving person?” 

             What to do next 

            get the name and role of approver 

            set a follow-up date 

            ask whether any other document is still required 

            Objection 4: “Cash flow is tight.” 

            What it may mean 

            Genuine financial pressure 

            A priority problem rather than a paperwork problem 

            Increased credit-risk signal 

            Better question: 

            “What amount can be paid now, and on what exact dates will the balance be cleared?” 

            Do not ask first: 

            “Why is your cash flow tight?” 

             That may create conversation but not payment. 

            What to do next 

            move from explanation to commitment 

            require a dated payment plan 

            tighten monitoring 

            treat broken commitments seriously 

            Objection 5: “We’ll pay next week.” 

            What it may mean 

            Sometimes true 

            Often a rolling delay phrase 

             Better question: 

            “What exact date, what exact amount, and by what payment method?” 

             What to do next 

            confirm in writing 

            log it as a promise 

            follow up same day if missed 

            Objection 6: “There is a dispute.” 

            What it may mean 

            Genuine operational issue 

            Delay tactic 

            Missing proof 

            Weak internal process 

             Better question 

            “What exactly is disputed, what evidence is needed, and who owns the resolution?” 

             What to do next 

            separate real disputes from vague ones 

            assign owner and deadline 

            do not leave the dispute undefined 

            Objection 7: “Your statement does not match our records.” 

            What it may mean 

            Genuine reconciliation issue 

            Unallocated cash 

            Credit note confusion 

            Delay excuse 

             Better question: 

            “Which items do not match, and can we reconcile line by line today?” 

            What to do next 

            reconcile immediately 

            identify exact differences 

            confirm corrected balance in writing 

            Objection 8: “The person who handles payments is not in.” 

            What it may mean 

            Temporary delay 

            Easy stalling technique 

            Weak contact management on your side 

             Better question: 

             “Who covers in their absence, and when exactly will they be back?” 

             What to do next 

            get secondary contact 

            improve debtor contact records 

            diarise follow-up precisely 

             Objection 9: “We’ve already paid.” 

            What it may mean 

            Genuine timing issue 

            Unallocated payment 

            Incorrect account reference 

            False claim 

            Better question:

            “Please send proof of payment now so we can allocate it correctly.” 

             What to do next 

            request POP immediately 

            verify bank reference 

            confirm allocation outcome 

            Objection 10: “The system is down.” 

            What it may mean 

            Genuine delay 

            Convenient stalling 

            Poor internal process 

            Better question 

            “When will the system be back, and what date has been set for payment once it is restored?” 

            What to do next 

            log the explanation 

            get a dated commitment 

            follow up promptly once the stated obstacle is gone 

             

            Objection 11: “We are waiting for our customer to pay us.” 

            What it may mean 

            Genuine cash pressure 

            Your debtor is financing itself through your balance 

            Increased risk signal 

             

            Better question: 

            “What amount can you pay now while the remainder is pending?” 

             

            What to do next 

            push for partial payment 

            avoid open-ended waiting 

            review whether continued credit exposure remains sensible 

             

            Objection 12: “The amount is too small to process right now.” 

            What it may mean 

            Low urgency for them 

            Weak payment priority 

            Delay by convenience 

            Better question 

            “What date has been allocated for payment, and can you confirm it in writing?” 

             

            What to do next 

            do not argue emotionally 

            move to specific commitment 

            track whether this customer repeatedly deprioritises your invoices 

             

            How to teach users to respond well 

            The right pattern is: 

             

            Step 1: Clarify 

            What exactly is the issue? 

             

            Step 2: Identify the owner 

            Who must act? 

             

            Step 3: Get a date 

            By when? 

             

            Step 4: Confirm in writing 

            What was agreed? 

             

            Step 5: Follow through 

            Was it done? 

             

            This is far better than: 

             

            arguing 

            accepting vague excuses 

            feeling reassured by friendly language 

            allowing undefined delays 

             

            A very useful teaching rule 

            Every objection should lead to one of three outcomes: 

            proof supplied, 

            date committed, or 

            escalation considered. 

             

            That one rule alone will make many users better collectors. 

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            We can effectively assist you with your outstanding debt, and so improve your cash flow and minimise your credit risk.

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            Kredcor Branches

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            010 500 4640
            083 518 0511

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            moc.puorgrocderkobfsctd-828721@idnal
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