Putting It All Together
The quantity of information on each customer’s credit history can be overwhelming but with today’s sophisticated software, analysis can be a snap. Creating the customer segments in a spreadsheet will allow the collection department to sort information as needed and can be used to prepare management reports.

The collections department will ultimately assign a risk value to each segment using information from the credit department and the collections portfolios. Customers can then be prioritized based on their overall risk value. Individual companies must decide how to assess risk values and priority levels based on their unique circumstances.

Finally, once you have collected information on your customers, entered the information into a spreadsheet, and segmented the customers, you will be ready to replace the former aging list with a newly prioritized list.