SOFTWARE FOR MANAGING RECEIVABLES

The demonstration software listed on this page is available for downloading. Just click on the link and follow the directions on your screen. The templates are Microsoft Excel 5.0/7.0 files and each file is locked. Even though you can't "make them work", you are able to inspect the necessary inputs and outputs. You will note that the inputs are minimal. The outputs, however, should provide you with a wealth of information.

If you would like to buy fully functional versions for yourself, you can do so by contacting me.

The May 1996 edition of Business Credit published an article about this software. Credit managers in Canada, Europe, and the United States are currently using it with much success. The reason for success is simple -- the program overcomes problems associated with the much used, but very misleading, DSO calculation. New features in the current version include economic value added calculations, the add-back technique, and the flexibility to customize headings for your aging buckets. The economic valued added sheet allows you to identify the contribution of the collection effort to your company's profitability. The price for Just Say No to DSO is $150.

To download a demo version, click here.

This Excel template is for analyzing the financial condition of a customer. Financial Statement Analysis: Number Cruncher is an updated version of a program that has been used in advanced financial statement analysis executives seminars taught by George Gallinger. By making a few inputs, you can obtain balance sheets, income statements, cash flow statements -- both direct and indirect --, profitability analysis, liquidity analysis, and prediction of financial distress, among other features. It is simple to use and unlike many commercial packages, it doesn't require an extraordinarily large expenditure for a program that you probably never fully understand. The price is $300.

To download a demo version, click here.

These programs address cash discounts and the effect of changing credit policy variables. Most firms offer cash discounts because their competitors do. However, neither marketing nor credit personnel have much understanding of whether the terms are optimal in the sense of increasing cash flows and, thus, the value of the company.

The Cash Discount template allows you to input values for credit and sales variables, including the perceived effect that credit has on sales levels and customers' payment patterns. The primary output is the discount to offer in order to maximum the present value of cash flows.

The Credit Policy model allows you to analyze the impact of changing credit policy--either loosening or tightening--on overall economic value of the company.

Together, these templates provide you the means to evaluate the tradeoffs implicit in credit decisions. The price for each program is $125.

To download a demo version of Cash Discount, click here.

To download a demo version of Credit Policy, click here.

How do you determine a customer's credit line? Many options exist, of course. Some people base it on the applicant's equity and financial ratios such as the current, quick, and debt-equity ratios. Other factors you need to consider are subjective in nature and difficult to quantify. The Credit Line template uses a technique that allows your intuitive judgment and experience to be captured quantitatively so that you can see the expected payoff from extending an uncollateralized line of credit. If the payoff is expected to be negative, it provides you with information about the amount of collateral you need to secure the credit line. The price for this template is $150.

To download a demo version, click here.