The core EQ Riskfactor “Client Analysis” functionality provides detailed insights into individual Clients, or portfolios of Clients, and Debtor Analysis takes that a stage further.
The underlying debtors represent the security for your lending, so detailed understanding of their payment patterns and credit quality is fundamental to the secure management of a factoring portfolio.
Debtor Analysis Benefits
- Early identification of deteriorating payment patterns for a debtor by collating data from several clients.
- Allows greatly enhanced information for decision making on funding limits.
- Enables swift action to reduce exposure to a specific debtor across numerous Clients in the event of debtor insolvency, or reduction in their credit worthiness.
- Facilitates top down management of aggregate exposure to individual debtors. Although, perhaps spread between multiple Clients, the Lender may wish to limit overall exposure to one debtor, by setting reduced limits for the debtor on each Client.
- Simplifies management reporting on high debtor exposures or exposures to specific sectors. As the debtors each have an Industry Code, reports can be easily generated showing underlying exposure to a potentially “at risk” sector, for example, Oil and Gas, Hospitality, Healthcare, etc.
- User-configurable reports to enhance Client Reviews and Management Information.
- Enhances oversight of decisions made by Relationship Managers or local offices in setting debtor credit limits.
- Assists underwriting new business as can give detailed historic data on a debtor’s trading with existing Clients, where they appear on prospect’s sales ledger as well.
- Allows early discussion with Clients on potential cash flow pressures if Alerts indicate consistent slow down in payments from their key debtors across other Clients.
- Gives new business opportunities if cash flow pressure identified with a debtor.