Reduce Bad Debt | Solution | Tesorio

Bad Debt Prevention

Identify Risk Before It Becomes a Write-Off

Only 20-30% of receivables aged past 120 days are ever collected. Once an invoice crosses that threshold, the odds collapse. Tesorio's AI monitors payment behavior, communication patterns, and customer signals to flag at-risk accounts 30-45 days early — before they age past the point of no return.

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4.7/5 on G2 (237 reviews)

The Challenge

Sound familiar?

Write-offs appear without warning

By the time an account is identified as high-risk, it's often too late. The payment window has closed, the customer is unresponsive, and the invoice goes to write-off.

No early warning system for payment risk

Your team relies on aging buckets as the primary risk indicator. But aging only tells you what's already late — it can't predict which current invoices will become problems.

Escalation paths are ad hoc

When a high-risk account is flagged, there's no standardized escalation workflow. It depends on who notices, when they escalate, and whether the right people respond.

How Tesorio Helps

A solution for every challenge

Challenge

Write-offs come without warning

Tesorio Collections Agent

AI models score every account for risk based on behavioral signals — payment velocity changes, communication gaps, dispute patterns — surfacing problems weeks before they're visible in aging.

Learn about Collections Agent

Challenge

No early warning system

Tesorio AR Forecasting

Predictive models analyze 50+ signals per account to generate risk scores that update daily. High-risk accounts trigger automatic alerts and priority outreach.

Learn about AR Forecasting

Challenge

Ad hoc escalation paths

Tesorio Workflow Automation

Automated workflows route at-risk accounts through standardized escalation paths: manager alerts, executive outreach, payment plan offers, and collection agency handoff.

Learn about Workflow Automation

The Process

How it works in practice

  1. Risk scoring activates

AI models analyze 50+ behavioral signals per account — payment velocity, communication gaps, dispute patterns — to generate daily risk scores.

  1. Early warnings trigger

High-risk accounts surface 30-45 days before they would become past-due, giving your team a window to intervene proactively.

  1. Escalation workflows fire

Automated escalation paths route at-risk accounts through manager alerts, executive outreach, payment plans, or collection agency handoff.

Results

The numbers speak for themselves

60% Bad Debt Reduction

30% Earlier Risk Detection

33 days Avg DSO Reduction

The Transformation

Before vs. after Tesorio

Before Tesorio With Tesorio
Risk identified only when invoices hit 90+ days overdue AI flags risk weeks before invoices become past-due
No behavioral signals tracked across accounts 50+ behavioral signals monitored per account
Escalation depends on individual collector judgment Automated escalation workflows with clear accountability
Write-offs surprise finance leadership Leadership sees real-time risk dashboard
Reactive approach: fix problems after they happen Proactive approach: prevent problems before they happen

“We used to discover bad debt at month-end. Now Tesorio flags at-risk accounts 30+ days before they'd become write-offs, giving us time to intervene and recover the cash.”
VP of Finance, Veeva Systems

Industry Recognition

Rated #1 by enterprise AR teams, quarter after quarter

Products that power this solution

Products that power this solution

AI Collections*Collections Agent* \Turns overdue invoices into cash — without adding headcount. AI drafts personalized follow-ups, extracts payment promises, and manages your dunning pipeline autonomously.\Learn more

ML Forecasting*AR Forecasting* \High-accuracy forecasts your finance team can trust. Invoice-level predictions, not spreadsheet averages.\Learn more

Workflow Automation*Workflows* \No-code automation for every finance process — connecting your entire finance stack.\Learn more

What Customers Say

“Tesorio's ability to give us real-time visibility into our cash position completely changed how we manage the business. We went from reacting to cash surprises to proactively managing our working capital.”

Greg Henry

CFO, Couchbase

FAQ

Reduce Bad Debt

Common questions about reduce bad debt

How early can Tesorio detect payment risk?

What signals does the risk model use?

Can we customize risk thresholds?

How does this integrate with our credit policy?

What's the typical ROI on bad debt prevention?

How much does bad debt prevention cost?

How long until we see fewer write-offs?

Ready to reduce bad debt?

$100B+ invoices collected|90%+ auto-match rate|33-day avg DSO reduction

Join the finance teams that trust Tesorio to automate AR, accelerate cash flow, and drive predictable results.

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