Consult your clients’ average payment delay

In debt collection management, it's essential to understand your clients’ payment behavior, so that you can take this into account when managing your reminders, and also to prevent the risk of non-payment.

To take advantage of this feature, you need to synchronize the lettered entries in your Clearnox tool. Please contact your partner or Clearnox support to find out if this is possible.

How is a client's average payment delay calculated?

A client’s average payment delay is the average of the payment periods for the various invoices already paid by the client.
Each payment period is the number of days between the invoice date and the actual payment date in the accounts, which is also the date of lettering of the entry. If the invoice date is not available, the entry date is used.

For example:

A client has already paid two invoices:

• Invoice 1 with invoice date 10/03/2024 and payment date 10/04/2024
  

• Invoice 2 with invoice date 11/02/2024 and payment date 10/05/2024
  

APD = Average payment delay = (31 + 89) / 2 = 60 days

The lettering of a credit note entry is also taken into account in the calculation of the APD.  

Can the payment due date be taken into account when calculating a client’s average payment delay?

If you prefer to have the average payment delay calculated based on the payment due date of your clients’ entries, you can change the calculation method for this indicator in your account.

As account administrator, go to Configure > Advanced options and change “the reference for calculating average payment delay" option to "Due date".

Your preference is taken into account when calculating the average payment delay displayed on the various pages mentioned below.

Where to find your clients’ average payment delay in Clearnox?

To make it as visible as possible and facilitate its use in your client debt collection management, the average payment delay of your clients is displayed in several places in your Clearnox interface.

    1. On the home page, you’ll easily find the average payment delay for the 10 debtors with the highest overdue amounts, in the "APD" column of the "Who owes you what?" section.

    2. On the client page, you'll find the "Average payment delay" section at the top right of the screen, with a graph showing the evolution of the client's APD over the last 12 months. This enables you to quickly detect any lengthening of the client’s payment delay, as well as anticipate any risk of non-payment.

    3. From the page Monitor > Who owes you what?, you can see the client’s average payment delay in the "APD" column.

If you wish to identify clients with an APD that exceeds a certain number of days, in order to take appropriate action for debt collection, for example, you can simply use the "Average payment delay (APD)" filter by selecting the appropriate minimum and maximum thresholds.

If the APD is 0: this means that the invoice payment date corresponds to the invoice date.