Help with Payment Performance History

[macfanuk]

I've just signed up to Experian to have a look at our companies credit report, and am quite concerned that the 'Payment Performance History' is showing that the 'Days Beyond Terms' is increasing month by month, but I've no idea what we are supposedly not paying.

I've uploaded a screenprint to here: https://preview.ibb.co/faL8RQ/IMG_4563.png

Is there any way of finding out who we supposedly owe money to so we can get this sorted?

 

[pentel]

First port of call should by your aged creditor list.

There is the possibility that you have some purchase invoices missing, but to have 8 suppliers with an average of 83days beyond terms this seems unlikely.

It may be that you have a very old invoice that is in dispute with a supplier and that will sit on their sales ledger, thus increasing the days beyond terms.

Could you have a lease with a final very small payment to complete which has not been paid to the supplier, but which they consider not worth chasing?

Any of the above plus lots of similar scenarios.

I would consider this well worth sorting as the screen you linked to is the second one I look at after the balance sheet when making credit decisions.

 

[macfanuk]

First port of call should by your aged creditor list.

There is the possibility that you have some purchase invoices missing, but to have 8 suppliers with an average of 83days beyond terms this seems unlikely.

It may be that you have a very old invoice that is in dispute with a supplier and that will sit on their sales ledger, thus increasing the days beyond terms.

Could you have a lease with a final very small payment to complete which has not been paid to the supplier, but which they consider not worth chasing?

Any of the above plus lots of similar scenarios.

I would consider this well worth sorting as the screen you linked to is the second one I look at after the balance sheet when making credit decisions.

Thanks for your reply. My understanding was that the 'Number of Experiences' was the number of ledgers that had our company on them, not necessarily the number of overdue invoices, and the 'Days Beyond Terms' was the Longest overdue invoice, or an average - is that not correct?

The thing is, as a rule, we don't tend to have credit as I like to keep or monthly commitments as low as possible. The only outgoings we have are rent, electricity, phone/broadband and a single piece of equipment on lease.

Would Experien likely give me details of who is reporting the unpaid invoices so we can clear it up?

 

[pentel]

Number of experiences is the number of ledgers that have items outstanding at the time of reporting. Our business uses a lot of different suppliers and the number of experiences varies up and down greatly.

My understanding is that days beyond terms is an average, though I may be wrong on this.

 

[macfanuk]

Number of experiences is the number of ledgers that have items outstanding at the time of reporting. Our business uses a lot of different suppliers and the number of experiences varies up and down greatly.

My understanding is that days beyond terms is an average, though I may be wrong on this.

Just phoned Experien, and they couldn't give me any further information yet (they are sending a query to head office), but they did clarify that the number of exeriences is the number of ledgers with outstanding invoices, and the days beyond terms is an average, so that is most definitely a concern if there are 8 ledgers showing we owe money and we don't know about them.

 

[pentel]

Things like taking prompt payment discounts can result in small amounts remaining on ledgers. It could be that there is a total of £5.50 outstanding ... or £55,000... I am sure you would have been chased for the latter by now though!!!