Payer ratings

The payer rating assesses your customers' payment habits. It allows you to manage your receivables effectively by generating a score for each customer, indicating how often they pay their invoices on time. The customer score is then transferred into a rating: Bad, Average, and Good.

There are three distinct levels:

Bad: Customers with a history of inconsistent or delayed payments fall into this category.
Average: Customers with generally satisfactory payment habits but with occasional delays.
Good: Customers who consistently pay on time or ahead of schedule.

Hover over the payer rating to reveal the percentage likelihood of a customer paying late, providing more detailed insight for comparing and understanding your customers' scores. For example, a 25% rating indicates that a customer is 25% likely to pay late, which means they will be rated as a Good payer

Key benefits to Payer Ratings:

Filtering: Easily filter customers based on their payer rating to streamline your collections process.
Schedule assignment: Assign customers to different follow-up schedules based on their rating for targeted communication.
Export inclusion: Include payer ratings in your exports for comprehensive reporting and analysis.

The payer rating can help you:

Compare your customers.
See who your worst debtors are and focus on them.
Group customers based on ratings.
Create different schedules using your customers' payer rating so that you can adapt the frequency and method of your chase.
Understand your risk, for example how many bad payers you have, and how many invoices are at risk of being paid late.
Produce periodical reports based on customer ratings to give insights into the percentages of good/bad payers in the total amount of receivables.
Adapt credit limits, for example when your customers become bad payers you may consider reducing their credit limit to decrease the risk to your business.

Payer ratings calculations

The payer rating considers the customer's previous payment behaviour, and predicts how likely they are to make late payments.

The calculation takes into consideration the following:

Day of week of due date.
Week of year of due date.
Year of due date.
The total difference in days between the due date and the paid date (Days delay).
Days delay for the previous invoice.
Days delay moving average (windows of 2) of earlier invoices.
Standard deviation of days delay for the last two invoices.
Total value of the invoice.
Total value of the previous invoice.
Total value moving average (windows of 2) of earlier invoices.
Standard deviation of the total for the last two invoices.
Invoice is paid late (1 if true, 0 if false).
The previous invoice is paid late (1 if true, 0 if false).
Total number of previous invoices paid late.

Payer ratings

Learn how the payer rating predicts payment behaviour