This article explains the late payment predictor and how important it can be to your debt-chasing processes.
Last updated: August 23, 2024
Late payment predictor
The late payment predictor anticipates the likelihood of an invoice being paid late. It's generated using a sophisticated machine learning model, providing you with a powerful advantage in managing your accounts receivable.
The late payment predictor appears for customers with at least one paid invoice for your organization. The score is generated for invoices that are before due, do not have a payment plan configured, or where the expected payment date is before the invoice due date.
The late payment predictor categorises the risk of late payment as low, medium or high. Hover over the rating to see the score displayed as a percentage.
Definitions
| Low | The invoice has a low likelihood of being paid late (0%-50%) |
| Medium | The invoice has a moderate likelihood of being paid late (50%-75% |
| High | The invoice has a high likelihood of being paid late (75%-100%) |
How can I use the late payment predictor to improve my credit control processes?
Use the late payment predictor to:
- Understand your current risk (how many invoices may be paid late).
- Prioritise your credit control efforts.
- Make the most impact by targeting the highest-risk invoices.
How is the late payment predictor calculated?
The late payment predictor considers your customer's previous payment behaviour and predicts their future payment behaviour on their due invoices.
The calculation takes into consideration the following:
- Invoice due date.
- Invoice value.
- Recent and historical payment behaviour and invoice details.
- Number of invoices paid late most recently and historically.