Credit Control and Management
Poor credit control management procedures cause many businesses to fail. This problem arises when businesses start receiving late payments, leading to a negative cash flow situation and an inability to pay staff and suppliers on time. Having a robust credit control procedure in place is essential for every business, regardless of size, to ensure timely payments.
Why are credit control and management important?
Frequent occurrences of late payments and payment defaults can pose a serious threat to the financial well-being of your company. Failure to address this challenge can be costly, as one in every five small-to-medium enterprise bankruptcies occur due to customer defaults on payments. Therefore, it is crucial to minimize such situations to safeguard the survival of your business. By implementing effective credit management procedures, you can ensure that your business receives the revenue it deserves and maintains long-term continuity.
Making your credit control system workare
It’s important to ensure that your credit control system is customer-friendly to increase the likelihood of receiving on-time payments. Credit control and credit risk management software can help you in this aspect so you can get a grip on late payments and debtors to improve cash flow.
1- MA!N by Ce-it
From customer screening to dispute management and invoice collection, MA!N offers a comprehensive solution that automates routine tasks, freeing up your time to focus on exceptions. With MA!N’s collections management module, you can automate the collections process, resulting in faster invoice payments. It monitors customer payment history to determine whether they pay on time, and based on algorithms, takes appropriate action. It also lets you send letters, emails, and SMS messages with just a single click. You can even segment your customers to ensure that they receive personalized treatment. MA!N also includes a credit risk management module
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of write-offs due to non-payment. It provides advanced insights into potential risks by utilizing both internal and external data. Custom scoring models, customer behavior insights, and debtor management integration make risk management seamless.
2- Sidetrade Credit Risk Management
Gain greater control over each customer’s risk profile and make smarter credit risk decisions with the Sidetrade Credit Risk Management module. This module provides a comprehensive view of all credit portfolios with real-time updates on business credit changes per account, enabling effective risk monitoring, warning sign alerts, and customized actions for customer-facing teams. You can even conduct business credit checks, customize customer credit limits and insurance guarantees, mitigate potential disputes, and drive targeted collections activity. The module consolidates payer profiles, financial information from external sources, and credit insurer guarantees so you can assess potential financial risk in real-time.
3- PDM Software
Hove-based Outstanding Solutions has developed the PDM software that retrieves invoice information from the user’s accounting system to establish a database that reflects the status of each invoice. Workflow tools are utilized to create a credit collection inbox, which generates customized lists to assist each collector in prioritizing and completing critical tasks in the appropriate sequence.
