Building An Intelligent Credit Management System

13 May, 2020
4 mins read
Timothy Fogarty, AVP, Digital Transformation
Linkedin profile

What you'll learn

  • Comprehend how leveraging technology could boost working capital and streamline cash-flow
  • Understand the state of automation in finance
  • Learn how finance can be transformed into a State of The Art process
  • Know about the benefits of technology in credit & collections management
Print Bookmark

Cash is King and organizations need it to boost their working capital and ensure smooth operations. It is this very reason that most businesses put in a lot of effort to establish an effective & on-time collection management system. But what they fail to realize is that having a full-proof Credit Management System(CMS) enabled with a best-in-class AI-powered credit management software can not only enable timely payments but also reduce bad debts.

So, is your Credit Management System as effective as you think it is?

A lot of businesses think that credit management is limited to onboarding new customers and assigning them a credit limit. But that is not all! A full-proof system comprises of- Onboarding of new customers, periodic reviews for the existing accounts, and releasing blocked orders.

Most organizations lack the ability and expertise to carry periodic reviews for their existing customers. This leads to untimely collections, bad debt, and hinders customer-client relationships.

Camila Durante, Credit and Collections Coordinator at L’Oréal shares a similar experience about their credit systems-

“This happened sometime back with us in Brazil, I was about to release a large order for one for our old customers and then I happened to go through their financial records one more time right before I’d released the order. So, I check it with the credit agencies, and the client is completely bankrupt.”

Such scenarios are not limited to L’Oréal, a majority of businesses out there face similar challenges due to an inefficient credit management system. As a result,

“I had to cancel the order to prevent any future loss. This really affected our customer-client relationship”

adds Camila when talking about what they did to tackle the situation. Further, talking about what their credit management system lacked, Camila says,

“It would have been easier to prevent more such cases if we had all the customer’s financial data just a click away.”

So, now the question arises, How do you achieve a smart credit management system to tackle all your problems? The answer to this question is by leveraging Intelligent Automation(IA). The introduction of Intelligent Automation(IA) in the finance sector, has taken B2B businesses by storm.

“IA is something really amazing and it could be the A/R teams’ one-stop solution”

says Camila. With faster collections, streamline work-flow, and reduction in credit risks, IA not only helps improve your working capital but could also make overall finance a State-of-the-Art Process.

With the introduction of Intelligent automation in Credit Management, you could not only onboard customers faster but also run on-time periodic reviews and handle blocked orders with just a single click. Here are some of the features that an IA-enabled, smart credit management system has:

Features that an IA-enabled, smart credit management system has.

Apart from these features, Intelligent Automation for Credit Management possesses multiple benefits as well.

Benefits of Intelligent Automation for Credit Management.

Leveraging Intelligent Automation in the credit management process could be the game-changer for the A/R teams across the globe. Deep-dive with Camila Durante into the benefits of IA in the O2C process.


Most Popular Resources

All Topics
Talk TO Our Experts

Streamline your order-to-cash operations with HighRadius!

Automate invoicing, collections, deduction, and credit risk management with our AI-powered AR suite and experience enhanced cash flow and lower DSO & bad debt

Talk to our experts

HighRadius Credit Software automates the credit management process, enabling credit managers to make highly-accurate credit decisions 2X faster and enable faster customer onboarding with 4 primary components: configurable online credit application, customizable credit scoring engines, credit agency data aggregation engine, and collaborative credit management workflow. Along with that, there are a lot of key features that should definitely be explored some of which are online credit application, credit information aggregation, automated credit scoring & risk assessment, credit management workflows, approval workflows, and automated bank & trade reference checks. The result is faster customer onboarding, better internal collaboration, higher customer satisfaction, more targeted periodic reviews, and lower credit risk across the company’s customer portfolio.

Thank you for signing up! Stay tuned :)