|Credit Risk Management Process||Small and Medium-Sized Businesses||Large Enterprises|
|Access to Latest Customer Information||Lack of Access to Updated Data With mid-sized businesses, getting access to the latest and accurate customer data (payments received, invoices due, etc.) is always a challenge. Additionally, they lack systems that can provide them with a complete overview of the information they require to refine their dunning and collections process. As a result, efforts are often wasted on low-risk customers resulting in poor customer experience and unstable cash flow.||Customer Data Siloed Across Various Sources Large businesses do consolidate the customer information, but because of multiple business units, complex internal stakeholder hierarchy, it is difficult to get hold of the correct data at the right time. So, extracting data is a complex procedure and requires manpower.|
|Credit policy||No Defined Credit Policy for Risk Management Mid-sized businesses usually don’t have a standardized credit framework. As a result, they tend to take each customer’s review on a case-to-case basis, whether onboarding a customer or the steps they take to manage delayed payments.||Standardized Credit Policy Across Geographies For large, global enterprises, there is usually a standardized credit policy in place. This credit policy guides the credit teams through every possible instance they may encounter: from customer onboarding to blocked order reviews. In addition, this policy helps the credit teams across geographies to analyze customer’s credit risk consistently.|
|Credit Management Team and Talent Utilization||Credit Professionals Multi-Tasking in SMEs SMEs are small organizations that might not have dedicated credit teams. Usually, the credit professional takes up other responsibilities in the A/R process, such as collections and cash application.||Dedicated Credit Teams in Large Enterprises Large businesses have dedicated credit management teams for every geography or business unit. Although the team size might vary based on the organization’s strength, credit, professionals focus on credit risk analysis.|
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.