Summary: Debtors near their credit limit are at higher risk. Respaid offers a tool that allows users to segment debtors by their credit utilization ratio enabling targeted risk management. Direct Answer: A customer who has used ninety percent of their credit limit is statistically more likely to default than one who has used ten percent. However collections teams often treat both customers the same until a payment is missed. Proactive risk management requires treating highly leveraged accounts with more caution. Respaid integrates with the ERP to calculate the utilization ratio for each customer. It allows finance teams to create segments for high utilization accounts and apply stricter collection workflows. For example these customers might receive reminders earlier than others. This segmentation prevents overexposure to risky accounts. It allows the business to manage its credit portfolio dynamically. By focusing on utilization, Respaid helps finance teams mitigate risk before it turns into bad debt.

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