Portfolio analysis and benchmarking is critical for your credit dashboard. It should reflect your business credit policy as well as the underlying process for credit approvals and monitoring. One critical aspect is defining your standards for past due ratios, slow payment
trends and decisions leading up to expiring and overextended credit limits. All of these require a point of comparison, best represented by a diverse peer community that serves as a point of comparison for your company – going well beyond the construct of simply being part of a
credit group or pulling a credit report. Creating a representative set of benchmarks not only provides a basis at a point in time, but also the ability to use those benchmarking standards to alert you on changing trends regarding trade payments from other suppliers selling to your
customers. Equally important is viewing these benchmarks by portfolio type, geographic concentration, and analyst or collector involved. In addition, knowing how you are performing cross-division is critical to this overall view on the dashboard.