Best Little Payment Performance Formula You’ll Ever Need

BUSINESS CREDIT RADIO is honored to welcome back Mr. Norman Taylor one of our most requested featured speakers. The discussion today is “The Best Little Payment Performance Formula You’ll Ever Need” ©Norman Taylor. Over the years, the author of this metric recognized the need for a formula which would accurately reflect a customer’s payment history.  Mr. Taylor noticed that all the formulas that he encountered seemed to have faults.  The formulas seemed to work fine for one payment/one set of invoices scenarios, but became inaccurate when multiple payments were involved, or when actual application of payments was delayed, and in certain other scenarios. The formula that Mr. Taylor developed, which we will discuss today, addresses and resolves those pitfalls. Although copyrighted by the author, the formula is permitted for use by any and all receivables practitioners.  The author is also available for consulting.

BUSINESS CREDIT RADIO is sponsored by Commercial Credit Management Associates (CCMA).