Quick answer
An aged debtors report lists who owes your business money and how long each invoice has been outstanding, usually in current, 30, 60 and 90-plus day columns. Lenders read it to judge working capital pressure, collection discipline and reliance on a few large customers. It links most closely to lines of credit and cash flow loans, because it explains why a profitable business can still be short of cash.
Key points
- Shows who owes you, how much and how overdue.
- Lenders look at the 60 and 90-plus day columns and at customer concentration.
- Explains why a profitable business is short of cash — the case for a working capital facility.
- Clean it up first: write off what won't be collected, chase what will.
- Links most to
- Lines of credit, cash flow loans
- Columns
- Current · 30 · 60 · 90+ days
- Prepared by
- Bookkeeper or accountant
- Enquiry
- No credit check
Profitable businesses run out of cash more often than people expect, and the aged debtors report usually explains why. It’s the list of money owed to you — invoices sent, work done, cash not yet received. For a lender considering a working capital facility, it’s one of the most revealing documents in the file. This page explains how lenders read it and how to present it.
What an aged debtors report shows
Produced from your accounting software, an aged debtors (or aged receivables) report lists each customer with outstanding invoices, split into columns by age:
- Current — not yet due
- 1–30 days overdue
- 31–60 days overdue
- 61–90 days overdue
- 90+ days overdue
Totals at the bottom show how much is owed overall and how much is getting old.
What lenders read from it
| What they look at | What it suggests |
|---|---|
| Total owed relative to monthly sales | How much working capital is tied up |
| Share in 60 and 90+ columns | Collection discipline and potential bad debts |
| Largest single customer’s share | Concentration risk |
| Who the customers are | Quality — government, large corporates, small businesses, consumers |
| Movement from last month | Whether things are improving or stretching |
A business with healthy sales but a lot of money in the 60 and 90-day columns has a clear working capital need. A facility can bridge it — but the lender also wants to see the business chasing those debts.
Why it links to lines of credit and cash flow loans
Business.gov.au describes working capital as the cash available for day-to-day expenses. When debtors stretch, that cash shrinks even if profit holds. The aged debtors report links the profit on the P&L to the shortfall in the bank account. It supports:
- Lines of credit — drawn when debtors stretch, repaid when they pay
- Short-term cash flow loans — for a defined gap while a large invoice is outstanding
- Larger facilities — combined with property security if the need is significant
Working capital facilities without security generally fall somewhere between $5k and $500k. If you’re wondering why you’re short despite a good year, our owners’ page on bookkeeper cash flow warnings walks through the logic.
Cleaning up the report before a lender sees it
Ask your bookkeeper or accountant to:
- Reconcile — make sure receipts have been applied to the right invoices
- Remove duplicates and credits sitting unallocated
- Review the 90+ column — is it really collectable? If not, discuss writing it off or providing for it
- Note disputes — any invoice in dispute should be flagged
- Date the report — “aged debtors as at 30 September”
Our bookkeeper’s guide to preparing a loan file covers the wider clean-up.
Concentration: one big customer
Many small businesses rely on one or two major customers. That’s normal, but it’s a risk a lender will weigh. You can help by providing:
- How long you’ve worked with that customer
- Their usual payment pattern (for example, “always pays at 45 days”)
- Any contract or ongoing arrangement
- What would happen if they left — other customers in the pipeline
An illustrative example
A hypothetical labour-hire business invoices about $180,000 a month. Its aged debtors total $310,000: $170,000 current, $90,000 at 30 days, $40,000 at 60 days and $10,000 at 90+ (one disputed invoice). Its largest client, a construction company, accounts for 40 per cent. Wages are paid weekly. The report shows exactly why the owner needs a line of credit: payroll goes out every Thursday, but clients pay at 30 to 60 days. With the disputed invoice flagged and the client relationship explained, a lender can see a sensible case. The figures are illustrative.
Improving the report before you apply
A few weeks of focused effort can noticeably improve how your debtors look to a lender:
- Chase the 60 and 90-day columns first. A phone call often works better than another reminder email.
- Offer easy payment options. Card, direct debit or payment links reduce friction for customers.
- Tighten terms for new work. Shorter terms or deposits on larger jobs reduce future build-up.
- Invoice promptly. Every day between finishing work and invoicing it adds a day to your cash cycle.
- Agree plans for slow payers. A documented arrangement with a struggling customer reads better than an open, ageing balance.
Business.gov.au’s cash flow guidance encourages owners to track money in and out regularly; the aged debtors report is one of the simplest tools for doing that, monthly, whether or not you’re applying for finance.
How it fits with other documents
- Aged creditors — what you owe; together with debtors, shows the working capital cycle
- Bank statements — confirms when debtors actually pay (how lenders read them)
- P&L — confirms the sales are profitable (the servicing link)
- Cash forecast — shows when the gap peaks and closes
Turn slow payers into a sensible facility
If your aged debtors explain why cash is tight, a working capital facility might be the right fit. Make a 60-second enquiry and tell us roughly what you’re owed and how quickly customers pay. No credit check is run when you enquire, your details are linked with one lender that suits rather than many, and a real person calls you to work through it. Accurate figures help us match you with the right facility from the start. Explore working capital options.
Frequently asked questions
Why would a lender want my aged debtors report?
It shows how much money is owed to you and how quickly customers pay. That helps the lender understand your working capital and whether a facility to bridge slow payments makes sense.
Is a large 90-day column a problem?
It raises questions. Lenders will want to know whether those amounts are collectable. If some aren't, it's better to write them off or provide for them with your accountant's guidance before applying.
What if one customer makes up most of my debtors?
That's called concentration. It isn't disqualifying, but lenders will ask about the customer's payment history and your relationship. A contract or long track record helps.
Is this the same as invoice finance?
No. Here the report is used as evidence of working capital for a line of credit or cash flow loan, not as security for each invoice.