In plain terms, debtors turnover indicates the number of times average debtors are turned over in a year.
The formula for debtors turnover ratio is: net credit sale/ average trade debtors.
The higher the value of the receivables turnover ratio, the more liquid your debtors are. The ratio is an excellent way for your business to measure cash flow from credit sales.
Before you consider issuing credit to a new customer, it's good practice to first conduct a credit check to establish they have positive payment practices and are in a strong financial position. Crediting a client or entering into a new contractual agreement without first establishing their credit history is not good practice.
The credit report compiled by Business Credit Express will identify any red flags in your customers' credit history. You may then decide whether to deal with them only in cash in the future.
As part of industry-leader Veda (formerly Baycorp Advantage), Business Credit Express has access to Australia's most comprehensive database of business and consumer information. As a result, our reports are world class. In addition to the Veda database, we utilise company accounts, government and public record data, and interviews.
At Business Credit Express, it's our goal to minimise business risks by providing companies of all sizes with all the information they need to make informed financial decisions. Our reports include:
Company Credit Report
A Business Credit Express Company Credit Report includes a credit risk assessment of low-to-mid exposure accounts to confirm creditworthiness.
Company & Director Report
A Company & Director Report targets SMEs with a turnover circa $10 million. It includes a credit risk assessment to give you peace of mind in your business dealings.
Buy your Business Credit Express report online today. Or, if you have any questions regarding any specific reports please contract a Veda customer service representative on 1300 921 621 or email firstname.lastname@example.org.