# 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.

[Speak With a Human](/content/request-demo/index.html) [See How It Works→](/content/solutions/reduce-bad-debt#solution/index.html)

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](/content/product/collections/index.html)

### 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](/content/product/forecasting/index.html)

### 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](/content/product/workflows/index.html)

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.

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

3. ### 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](/content/product/collections/index.html)

[ML Forecasting\**AR Forecasting** \High-accuracy forecasts your finance team can trust. Invoice-level predictions, not spreadsheet averages.\Learn more](/content/product/forecasting/index.html)

[Workflow Automation\**Workflows** \No-code automation for every finance process — connecting your entire finance stack.\Learn more](/content/product/workflows/index.html)

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.

[Speak With a Human](/content/request-demo/index.html) [See Tesorio in Action→](/content/compare/index.html)

Trusted by the best finance teams in tech