This e-book explains the five essential credit management workflows for every business to optimize credit operations for fast, accurate decisions based on dependable, up-to-the-minute information. The findings are based on responses from 271 companies to a very extensive questionnaire which gathered data on a number of areas related to credit management and business performance.
Credit management is an important business function in any organization. Credit management process, also called credit control, consists of multiple techniques to ensure that buyers pay on time, credit costs are kept low, and past-dues are recovered without damaging the relationship with customers.
Credit risk management should be seen as one of the unheralded drivers of B2B success and as a fundamental aspect of revenue enhancement and risk containment. Poor credit policies, lax credit terms, inefficient credit reviews, and broken correspondence chains are common potholes on the road to shorter collection cycles, reduced financial risk, and improved cash flows. Businesses spend precious time and resources reducing liquidity risk exposure and ensuring smooth cash flow. This effort is distracting and time-consuming, and companies need to look at smarter mechanisms for improving credit risk management, not just for better financial yields but also to facilitate compliance with corporate governance rules.
To firmly establish a credit risk management culture, forward-looking companies are increasingly seeking help from new technology, and their weapon of choice is automated credit risk management delivered via workflows. Credit management workflows enforce credit policy while providing adequate support for increasing top-line business growth. They eliminate the convoluted process and time-consuming work of credit decisionmaking, drastically slash response times, and improve compliance while reducing related overhead costs. This e-book explores the essential elements for modeling and executing credit management workflows and the five most significant workflows that help organizations leverage credit operations as a strategic function to drive liquidity while maintaining optimum business risk level.