Use Grids to clearly show the core information you need
EQ Riskfactor provides a multitude of different parameters focusing on invoices, cash, dilutions, and many more aspects of a customer’s sales ledger profile. Too much data at once makes it hard to spot trends, and so Grids can be applied to clearly show the information that you need.
COVID-19 Portfolios
EQ Riskfactor can be set up to automatically add and remove clients to a Portfolio, depending on certain trends. These can then be used in conjunction with the COVID-19 Grid or any other Grid.
Barclays share their COVID-19 Portfolio
Stuart Saunders, Head of Sales Finance, Specialist Risk Unit, Barclays Corporate Banking, has kindly shared a new Portfolio which he uses to quickly identify which clients to monitor more closely during the outbreak.
The Portfolio is simple to set up and consists of 3 key criteria:
- Cash movement <10%
- Sales Movement >30%
- Utilisation % (net) >85
Any clients that meet this criteria are showing a reduction in cash being received, alongside a large increase in sales. Furthermore, they are all borrowing over 85% of their availability and so are high risk in a potential collect out situation.
The causes of these 3 metrics deteriorating could be due to reasons beyond their control or as a result of deliberate manipulation of their invoice finance facility.
