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What an aged debtor report contains
The aged debtor report (also called the debtors ledger or accounts receivable ageing) lists every customer with an outstanding balance, broken down into columns showing amounts current (not yet due), 1–30 days overdue, 31–60 days, 61–90 days, and over 90 days overdue. A final column shows the total outstanding balance per customer.
The report should also flag invoices subject to a dispute, any credit notes outstanding, and balances where a payment plan has been agreed. Unmarked overdue amounts with no note suggest a credit control gap rather than a genuine dispute, which lenders will query.
Key columns for a complete aged debtor template
- Customer name and account reference
- Credit limit and credit terms (e.g. 30 days net)
- Current (not yet due)
- 1–30 days overdue
- 31–60 days overdue
- 61–90 days overdue
- 91+ days overdue
- Total outstanding
- Dispute flag (Y/N) and brief note
- Last payment date and amount
- Collector responsible
Using the aged debtor report in lending applications
Commercial lenders — particularly invoice finance providers — will request a copy of the aged debtor report as a primary underwriting document. They use it to assess the quality of the debtor book: concentration risk (a single large customer representing a high percentage of the ledger), the proportion of overdue debt, and the prevalence of disputes or contra arrangements.
A clean aged debtor report with the majority of balances in the current or 1–30 day bucket and a low dispute rate supports a stronger lending proposition. Before submitting, reconcile the total on the aged report to the trade debtors balance in your balance sheet and resolve any difference. Your accountant or finance team can assist with the reconciliation.
Frequently asked questions
What is Days Sales Outstanding and how is it calculated?
DSO measures the average number of days your business takes to collect payment after making a sale. It is calculated as (trade debtors balance ÷ annual turnover) × 365. A rising DSO suggests deteriorating collection performance. Most invoice finance lenders will compare your DSO against your stated payment terms to assess dilution risk.
Should disputed invoices be excluded from an invoice finance aged debtor report?
Yes. Most invoice finance facilities require disputed invoices to be flagged and excluded from the eligible debtor pool used to calculate the available funding line. Submitting disputed invoices as undisputed is a common cause of facility compliance breaches. Maintain clear notes on each dispute and update them at every reporting cycle.
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