Reviewing Your Customer Portfolio to Increase Collections: Why It’s Important & What to Include

Aug 31, 2022 | Blogs

Today’s market uncertainty has many businesses rushing to analyze their portfolios to develop credit risk reduction strategies across their enterprises. And while drilling down to the account level is important when it comes to managing specific customers’ financial concerns, seeing the big picture allows you to analyze your overall portfolio holistically and interpret results to adjust your risk management approach on a more macro level.

Let’s face it – not everyone wants nitty-gritty financial details about individual customers, especially C-suite executives who are charged with overseeing corporate enterprises, their policies, and strategies on a higher level. Xactus’ Portfolio View solution is a suite of high-value analytical reports that provide sophisticated data visualization tools which offer clients insights into their own data to help drive action. These reports can be pulled annually or as needed and give executives a birds-eye view of what their current portfolio looks like.

Specifically, Portfolio View reports include the following three critical components:

  • Credit risk statistics – Two different scores are provided, Intelliscore V2 Plus and the Financial Stability Risk Score. These scores range from 0-100 (the higher the score, the lower the risk) and let companies see how many businesses within their portfolios fall in different ranges. Intelliscore V2 Plus predicts the likelihood of default (i.e., how quickly are they going to pay me?), and Financial Stability Risk Score predicts the likelihood of delinquency (i.e., how stable is the company and will I eventually get paid?). For example, Wal-Mart and the government may have a low Intelliscore V2 Plus because they both notoriously pay late. However, they are both large, stable entities so their Financial Stability Risk Score may be higher, giving a company confidence that they will eventually pay what is owed.
  • Public record statistics – This data expands the risk analysis, applying it against several public record and collection indexes and shows judgment trends, UCC counts, lien trends and collection counts.
  • Industry classification statistics – With this data, a portfolio can be broken down into two categories: benchmarks against the Department of Labor’s major industries and the top 10 industries found within the company’s portfolio – along with risk scores for those particular industries.

Together, all of this information allows a company to accomplish three very important objectives:

  • Protect its bottom line
  • Clearly see areas/industries where growth is possible
  • Identify trends in data and react accordingly

If you are looking for a better way to analyze your company’s portfolio from a more macro level – a method that offers actionable risk management metrics and insights that can help you protect and grow your business, contact your Xactus strategic account manager and ask them about Portfolio View.

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