The Foundation of Effective Collections in a Digital World:
Part 10 Financial Difficulties
Financial difficulties: Use early warning signs and technology to
intervene sooner
The warning signs remain highly relevant: late payments, requests for
extended terms, invalid disputes, post-dated cheques, reduced orders,
guarded responses, rumours, and more.
Modernise it with technology:
-
Behavioural monitoring: Track changes in payment patterns
(slipping DSO, increasing dispute rates, shrinking order
volume). -
Risk alerts: Flag customers who suddenly shift behaviour (smaller
payments, more queries, longer approvals, partial settlements). -
Triage playbooks: When a customer trips risk thresholds, trigger
a defined playbook: tighten terms, reduce exposure, require deposits,
escalate to senior contact, or pause supply depending on
policy.
Outcome: You reduce losses by acting early, before insolvency becomes
obvious.
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