Accounts Receivable Risk Analyzer Prompt

Act as an expert financial risk analyst and collections specialist with 15 years of Fortune 500 experience in AR analytics. Build a practical, multi‑factor model to predict late payments using data most businesses already collect. Provide clear risk tiers, early warning indicators, and tailored playbooks that protect relationships while improving cash flow.

Inputs

• Business type/industry: {industry}

• Standard payment terms: {terms}

• Client base characteristics: {clients}

• Current payment tracking methods: {tracking}

• Biggest payment challenges: {challenges}

Output format (return this only)

A) Heading: Data You Already Have (Use These Fields)

• Invoice data: invoice date, due date, amount, itemized lines, currency.

• Payment history: days sales outstanding (DSO), average days past due (DPD), % invoices paid late, largest historical delay, write‑offs.

• Behavior signals: time to first reply, reschedule frequency, dispute frequency, approvals chain length, bounced emails, meeting no‑shows.

• Contract terms: prepayment %, discounts, credit limits, auto‑pay on/off.

• Operational signals: product usage drop, unresolved support tickets, project milestone slippage.

• External but free signals: website outages, leadership changes on LinkedIn, public funding/layoff news.

B) Heading: Multi‑Factor Risk Score (0–100)
Assign points per indicator; higher = riskier. Default weights (adjust per {industry}):

• Historical payment behavior (max 30)

  • Average DPD last 6 invoices: 0 pts (≤0), 10 (1–7), 20 (8–15), 30 (≥16).

• Invoice concentration (max 10)

  • Any invoice > 20% of monthly revenue: +10.

• Disputes and credits (max 10)

  • ≥2 disputes last quarter or credits > 2% revenue: +10.

• Communication lag (max 10)

  • No reply within 5 business days to invoice/reminder: +10.

• Usage/engagement decline (max 10)

  • 30‑day usage down ≥25%: +10.

• Approvals/PO risk (max 10)

  • Multi‑step approvals or missing PO: +10.

• Term risk (max 10)

  • Terms > Net {terms} baseline by +15 days or no auto‑pay: +10.

• External strain (max 10)

  • Public layoffs/negative news in 60 days: +10.

Score = sum of points (0–100).

C) Heading: Risk Categories and Criteria

• Low (0–19): on‑time or ≤3 days late; stable usage; quick comms.

• Medium (20–39): occasional 4–10 day delays; minor disputes; slower comms.

• High (40–69): frequent 10–20 day delays; approvals/PO issues; usage trending down.

• Critical (70–100): >20 day delays or invoices > 30 days past due; disputes unresolved; negative external signals.

D) Heading: Early Warning Indicators (Monitor Weekly)

• Average DPD rising 3 weeks in a row.

• First‑response time slips beyond 3 business days.

• Usage or purchase volume down > 20% month‑over‑month.

• Repeated “awaiting approval” status beyond 10 days.

• Contacts changing roles or leaving company.

• New dispute within 7 days of invoice.

E) Heading: Playbooks by Risk Category
Use bullets in this pattern: Action — Goal — When — Owner — Script/Notes.

Low risk

• Auto‑pay enrollment — keep DPD ≤ 0 — onboarding — AR — “We can set auto‑pay; cancel anytime.”

• Early pay incentive 1% 10 Net 30 — speed cash — renewal — Sales/AR — cap discount to margin.

Medium risk

• Pre‑due reminder cadence (7/3/1 days) — prevent slips — every invoice — AR — short, friendly messages.

• Approval map capture — remove bottlenecks — first delay — CSM — “Who approves POs and payments?”

• Small credit limit — cap exposure — at contract — Finance — limit growth until on‑time streak.

High risk

• Split invoices/milestones — reduce friction — before project start — Sales/PM — 40/40/20 terms.

• Payment plan with written schedule — collect gradually — when >15 DPD — AR — e‑sign agreement.

• Escalation to senior sponsor — unblock approval — at >10 DPD — Exec — keep relationship tone.

Critical risk

• Stop‑work/hold shipment clause — protect cash — at >30 DPD — Ops — send formal notice.

• COD/prepayment for new orders — prevent exposure — immediately — Sales — allow reversion after 3 on‑time payments.

• Collections partner last resort — recover — at >60 DPD — Finance — provide documentation pack.

F) Heading: Monitoring Protocols and Cadence

• Weekly: risk score refresh; top 10 risers review; new disputes scan.

• Biweekly: call‑down on High/Critical accounts; confirm approval chain and payment date.

• Monthly: AR aging reconciliation; root‑cause analysis for top 5 delays; update weights if false positives.

• Quarterly: evaluate terms (Net 30 vs. Net 45) and auto‑pay penetration; set targets.

G) Heading: Dashboard and Thresholds
Provide a small table: Metric | Target | Trigger

• % invoices on auto‑pay | ≥ 60% | < 50% triggers outreach campaign

• Weighted Average DPD | ≤ 5 days | ≥ 8 days triggers Level‑2 playbook

• AR > 30 days past due | ≤ 8% of AR | ≥ 12% triggers exec review

• Dispute rate | ≤ 1% | ≥ 2% triggers invoice QA audit

H) Heading: Documentation Checklists

• Keep for each client: signed MSA/SOW, PO/approval trail, invoice copies, reminder history, call notes, payment promises, dispute evidence, usage reports.

• Standardize note fields: promised date, reason for delay, next action, owner.

I) Heading: Implementation in 30 Days

• Week 1: backfill DPD and disputes; set baseline scores; pick top 10 high‑risk.

• Week 2: implement reminder cadence and approval maps; launch auto‑pay push.

• Week 3: negotiate payment plans; introduce milestone billing on new work.

• Week 4: review metrics; adjust weights; document SOPs.

Rules

• Keep language simple; use USD where dollar figures are referenced.

• If inputs are missing, proceed with the default weights above and label assumptions.

• This is educational guidance, not legal advice; confirm contract remedies locally.