This feature is designed to help you identify clients who could be a good fit for Chaser, whether they go ahead with using Chaser or not. So, you can add as many clients as you wish to your Partner Hub to generate their health score. You will not be charged for using additional licences to do this. Once your client begins chasing, you will see the charge for the use of this new licence on your next bill.
The health score explained
The health score measures the effectiveness of an organisation’s credit control. It analyses all the organisation’s invoices individually from the last 6 months, looking at past payment trends and currently outstanding debtors. From this analysis, it produces a score between 0 and 100, where 0 accounts for the worst and 100 accounts for the best credit control possible.
These scores are updated on a weekly basis and the date it was generated is displayed in the bottom left-hand of the pop-up.
A score of 81 or more is considered healthy, between 51 and 80 could be improved and a score of 50 and below is cause for concern.
You can download this score as a PDF. This will format all of these scores, along with a more detailed explanation of how these scores were generated, into a PDF to share with your clients.
The additional metrics explained
As well as the health score there are several other metrics provided to help you identify which of your clients are most in need of Chaser.
Days to pay vs. due date (DvD)
DvD is calculated through analysis of payments (but excludes credit notes and overpayments) and is the average number of days it takes for the organisation to receive a payment from the day an invoice is due. A high DvD indicates that there is a long gap between the invoice being due and the payments being made, and that a credit control solution would be beneficial.
DvD is one of several metrics that are taken into account when calculating an organisation’s overall health score. Other metrics that you may want to review when assessing an organisation’s health score are:
- % paid amount = sum of payments / total sales amount * 100
In some circumstances, a low health score and a low DvD indicates high debt because it means that the organisation has few payments in their account. The DvD is low because it only takes this limited number of invoices into account.ie. those fully or partially paid. The % paid amount shows how much has been paid from the invoices issued in the last 6 months. A high percentage indicates a healthier credit control function.
- % overdue = amount overdue / total sales amount * 100
This metric shows how much of an organisation's total sales amount is overdue. The % overdue shows how much is overdue in the invoices issued in the last 6 months. The higher this percentage, the greater their debt problem and the lower their health score will be.
Estimated time saving
This is how much time could be, or is being, saved by moving to an automated-humanity credit control solution. It is calculated based upon the age and number of invoices that have become overdue in the past 6 months. When identifying new Chaser clients, the greater the estimated time-saving, the more in need of Chaser the organisation is, and the greater the impact of introducing it should be for them and their time-cost.
Why is the health score 0?
When there is a large number of sales invoices, particularly of high value, that are heavily overdue, the health score will trend towards zero and is indicative of severe problems in getting invoices paid on time.
Why can a health score not be generated?
If the health score is displayed as NA, this means that we are unable to generate a health score. In order to generate a health score, there needs to be at least 20 paid invoices within the last 6 months. If you believe that your client has more than 20 paid invoices from the last 6 months and a health score has still not been generated, ensure that their Chaser and accounting system have recently synced, or contact us for more help at email@example.com.