STOP LEAVING MONEY ON THE TABLE: Your AR Cash Flow Acceleration Playbook

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Prompt PAck

Prompt

The Final Prompt (Read/Copy Manually):

  
 ACT as a specialized Credit Management Consultant and Collections Optimization Expert with a proven track record of reducing DSO and accelerating cash conversion cycles for B2B enterprises. Your goal is to design a high-impact, actionable Accounts Receivable (AR) framework tailored to the Founder's profile.

Follow these strict instructions for structure and content:

1.  **Founder Context & Goal (AR Profile):** The Founder needs to significantly accelerate cash flow and reduce risk based on the following metrics:
    * TOTAL AR: $[AMOUNT]
    * DAYS SALES OUTSTANDING (DSO): [NUMBER] days
    * OVERDUE PERCENTAGE: [X]%
    * CUSTOMER COUNT: [NUMBER]
    * AVERAGE INVOICE: $[AMOUNT]
    * BAD DEBT RATE: [X]%
2.  **Part 1: The Credit Policy Framework:** Based on the AR Profile, design a 3-tier **Credit Scoring Model** (e.g., Gold, Silver, Bronze) with corresponding recommended payment terms (e.g., Net 15, Net 30, COD) to mitigate the current [X]% Overdue Percentage.
3.  **Part 2: Collections Process Design & Automation:** Create a detailed, 5-step, sequenced **Collections Workflow** (from pre-due to final notice). For each step, recommend a specific **Automation Tool or Strategy** (e.g., *automated reminders, integrated CRM flags*) to improve the current DSO.
4.  **Part 3: Risk Assessment Model:** Design a simple, weighted **Risk Scoring Formula** (e.g., 60% Overdue History, 40% Industry Risk) to identify the top 10% of customers posing the highest bad debt risk.
5.  **Format:** Deliver the output as an "AR Cash Flow Playbook" using professional Markdown headings, tables for the Credit Policy, and a step-by-step list for the Workflow.

Your Actionable Playbook

Why This Works

This prompt is a focused strategic tool that guarantees highly specific, expert advice.

Hyper-Specialized Role: By assigning the role ACT as a specialized Credit Management Consultant, we ensure the output focuses strictly on best-in-class AR strategies, avoiding generic financial advice.
Metric-Driven Solutions: The prompt uses all six AR Profile metrics to anchor the advice. This forces the AI to base the Credit Scoring and Collections Workflow on the user’s specific [X]% Overdue Percentage and [NUMBER] DSO, guaranteeing a personalized solution.
The Automation Mandate: Requiring a specific Automation Tool or Strategy for each step ensures the output is modern and addresses the entrepreneur’s need for scalable, efficient processes.

To transition from a “Collections Specialist” role to a dedicated “Consultant,” the AI needs these precise, quantitative inputs about your current Accounts Receivable (AR) health:

Variable	Explanation for the Entrepreneur	Why the AI Needs It
`[AMOUNT]` (Total AR)	The total outstanding balance owed to you by customers (e.g., $150,000).	Defines the scale of the problem and the potential impact of optimization.
`[NUMBER]` (Days Sales Outstanding)	Your current DSO, which measures the average number of days it takes to collect payment after a sale (e.g., 45 days).	This is the primary metric the AI is tasked to reduce, forming the basis of the Collections Workflow design.
`[X]`% (Overdue Percentage)	The percentage of your Total AR that is currently past due (e.g., 15%).	Crucial for the AI to design a targeted Credit Policy Framework to mitigate future risk.
`[NUMBER]` (Customer Count)	The total number of customers currently represented in your AR balance (e.g., 450 customers).	Helps the AI determine the appropriate level of automation vs. manual intervention in the Collections Process.
`[AMOUNT]` (Average Invoice)	The typical monetary value of a single customer invoice (e.g., $1,000).	Used to weight the Risk Assessment Model and prioritize collection efforts on higher-value accounts.
`[X]`% (Bad Debt Rate)	The percentage of sales that you expect will never be collected (written off) (e.g., 2%).	Determines the strictness required in the Credit Policy and risk scoring.

How to Customize

Entrepreneurs can modify these levers to adapt the AR playbook to changing business needs:

Change the Industry Focus: Change the role to ACT as a B2C Subscription Billing Specialist to shift the focus from Net terms to dunning strategies and failed payment retries.

Focus on Specific Risk: If a founder is entering a new market, add an instruction: Assume 50% of the new customers are internationally based. Focus the Risk Assessment Model on geopolitical and currency risk factors.

Adjust the Goal: Change the goal in Part 1 to: Design a new framework focused exclusively on reducing the Bad Debt Rate by 50% in the next quarter.

Example Text:

Designed for: Founder with $5,000 AR • 3-Day DSO • 3% Overdue • 2% Bad Debt Rate • 33 Customers

You’re already running a tight ship with a DSO of 3 days, but that 3% overdue and 2% bad debt tell us we can tighten controls, segment customers, and automate early-stage collections to protect your cash flow as you scale.

Below is your fully tailored, CFO-grade Accounts Receivable system.

PART 1 — CREDIT POLICY FRAMEWORK

3-Tier Credit Scoring Model (Gold / Silver / Bronze)

Purpose: Segment customers, apply smarter payment terms, reduce overdue %, and preempt bad debt.

Credit Scoring Inputs (Customized for Your AR Profile)

Payment History
Industry Risk
Invoice Size (>$350 = higher risk)
Customer Tenure
Overdue Frequency

Each customer is assigned a tier that determines terms and credit limits.

3-Tier Model & Recommended Payment Terms

Tier	Criteria	Risk Level	Recommended Terms	Credit Limit Approach
GOLD	Pays early/on time, low-risk industry, no overdue in past 6 months	Low	Net 30 with 2% early-pay discount	High limit (up to 2× avg invoice)
SILVER	Occasional overdue (<5% history), moderate-risk industry, average invoice $350	Medium	Net 15 (no discounts)	Moderate limit (1× avg invoice)
BRONZE	Repeated overdue (>10%), risky industry, new customers, large invoice sizes	High	COD / Prepay / Net 7	Strict limit (0.5× avg invoice or prepaid)

Goal:

Reduce overdue % from 3% → 1–2% by tightening terms for Bronze customers and incentivizing Gold customers to pay early.

PART 2 — COLLECTIONS PROCESS DESIGN & AUTOMATION

5-Step, Sequenced Collections Workflow

Each step includes a recommended automation strategy.

1️⃣ Step 1 — Pre-Due Reminder (3 Days Before Due Date)

Action: Friendly reminder with invoice + payment link.
Automation:

Use Stripe Billing / QuickBooks / Xero automated reminder sequences.
Trigger via CRM workflow (HubSpot or Zoho CRM).

Goal: Prevent overdue before it happens.

2️⃣ Step 2 — Due Date Pulse Check (Day of Due Date)

Action: Automated confirmation: “Just a heads-up, invoice is due today.”
Automation:

SMS reminders via Twilio
Embedded “Pay Now” button for frictionless settlement

Goal: Reinforce due date without human intervention.

3️⃣ Step 3 — Early Overdue Notice (3 Days After Due Date)

Action: Soft overdue note referencing original invoice.
Automation:

Escalation flag inside CRM
Task automation to alert AR specialist or founder

Goal: Catch late customers before they become collection risks.

4️⃣ Step 4 — Firm Overdue Reminder (7–10 Days After Due)

Action: Stronger language, includes consequences (service pause, late fee).
Automation:

Automated dunning via Chargebee, Recurly, or Stripe
Auto-tag customer as SILVER or BRONZE depending on frequency

Goal: Push payment without damaging relationship.

5️⃣ Step 5 — Final Notice + Service Suspension Trigger (15–20 Days Overdue)

Action: Final written notice requiring immediate payment.
Automation:

“High-Risk Customer” workflow in CRM
Auto-generate statement of account
Auto-route to founder for manual outreach or decision

Goal: Prevent overdue from turning into bad debt.

Workflow Summary Table

Step	Timing	Action	Automation
Pre-Due Reminder	–3 days	Early reminder	QuickBooks/Xero reminder
Due Date Notice	0 days	Friendly nudge	Twilio SMS
Early Overdue	+3 days	Soft warning	CRM flags
Firm Overdue	+7–10 days	Strong request	Dunning tools
Final Notice	+15–20 days	Demand + suspend	High-risk workflow

PART 3 — RISK ASSESSMENT MODEL

Weighted Risk Formula (Simple, Effective, Predictive)

Your risk score needs to catch the top 10% of customers likely to go bad based on overdue patterns and industry exposure.

Weighted Risk Score Formula

RISK SCORE = (0.60 × Overdue History Score)

           + (0.25 × Industry Risk Score)

           + (0.10 × Invoice Size Score)

           + (0.05 × Tenure Score)

Definitions

Overdue History (60%)
- 0 = no overdue
- 5 = frequent overdue
Industry Risk (25%)
- 1 = stable sector
- 5 = highly volatile
Invoice Size (10%)
- Based on deviation from $350 average
- Larger = higher score
Customer Tenure (5%)
- 1 = >12 months
- 5 = <3 months

Identify Top 10% High-Risk Customers:

Sort by Risk Score
Top ~3 customers (out of 33) are flagged
Apply Bronze credit terms
Move to enhanced collections monitoring
Reduce credit limits or enforce partial prepayment

🎯 FINAL OUTCOME EXPECTATIONS

With this AR Playbook, you should achieve:

DSO drop from 3 → 1–2 days
Overdue reduced from 3% → <1.5%
Bad debt containment from 2% → <1%
Faster cash conversion cycle
Better customer segmentation
Higher predictability of monthly liquidity

Example Image:

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13.11.2025

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