Monjuá increases sales and reduces default with Meu Crediário

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Monitoring reports and spreadsheets are often bureaucratic and sometimes even difficult to understand. But working with this data strategically is essential if you want to evolve as a manager and stand out from the competition.

For those who sell on credit, for example, having access to a ios database detailed default report (and knowing how to interpret it) represents a great competitive advantage.

It is an extremely valuable source of information, which every retailer should know how to use in order to assess their real financial situation and discover where the weak points of their business are.

The purpose of this type of report is to:

Analyze the store's current default situation;
Estimate future default (from 30 days default, project 180 days default);
Compare your store's default rate with that of other retailers;
Provide a conclusion about the current state of the store.
When well prepared, the default report offers valuable help in knowing when to boost credit sales or further restrict credit, if necessary.

However, to ensure these benefits of the report, it is necessary to avoid some common mistakes when reading it and ensure a good interpretation to make better decisions. This is what we will talk about in this article. Let's go!

Common mistakes when reading default reports
Some errors are common among retailers when reading the report and this prevents efficient interpretation. To learn how to identify them, you can watch the following video or continue reading:

YouTube video
A common first mistake is to choose to look at the entire credit history, from the opening of the store to the present moment. This is incorrect because, when you look at defaults in this way, you see all the accumulated losses since the opening of the credit account. The ideal, then, is to check the loss over a period of 180 days.

At the same time, looking at this accumulation, it will also be difficult to understand the default rate.

Let's suppose, for example, that there is a 2.5% rate on a multi-year credit plan, with a very large portfolio, and the last month generated a very high rate.

This high value from last month will cause the 2.5% to rise to 2.6%, masking the current reality of the store. Therefore, the ideal is to check the default rate after 30 days.

By doing this, it may happen that in 30 days you see a default rate of, for example, 20%, a number that, at first, is quite frightening.

However, by analyzing the report, you will notice that your credit recovery is within 90 days – information that will change everything in the management of your credit account.

With this understanding, you will focus on collecting debts within 30 days, leaving it to go into default only after that period. By concentrating your efforts on the 30 days, recovery will be evident in 90 days.

How to include Interest and Fines in the default report
Another common mistake is to include interest and fines in the default report . By charging a fee of, for example, 5% and including this amount in the report, the default rate numbers go down, since you are charging more from those who pay late.

However, it will not be possible to identify your capital, that is, the assertiveness index of what the store is selling and receiving.

Therefore, you should start by checking defaults by billing , checking the financial health of your credit account.