Automating credit rules is just as important as automating collection rules. It will save time that can be spent contacting customers, and improve the credit quality of your accounts receivable.
Credit quality has a direct bearing on collections. Better quality accounts receivable are easier to collect. Less effort required means more time for your team to work on priority collections.
Here are some credit rules you should be automating.
Automated Credit Scoring
Credit scoring is an important but tedious and time consuming process if it is done manually. Manual credit scoring requires gathering the necessary pieces of information from diverse sources, entering the information in a spreadsheet, calculating and reviewing the score.
Compiling the data can require a great deal of effort depending on the accessibility of the information, and the complexity of your credit score calculation. Information sources that require phone calls can be a huge time suck.
Credit scoring can be tailored to meet your requirements and automated to save time and provide an up-to-date picture of an account’s credit quality. Direct feeds from credit information sources, and automated calculations free up time better spent reaching out to customers.
Automated Reminder for Credit Review
Credit reviews need to updated periodically or when a major change occurs (e.g. change of ownership) to be a useful tool for assessing credit quality. If you have a large number of customers, keeping track of when a credit review is due on a manual basis is a time consuming and unnecessary clerical task. With an automated reminder your team members can simply program a date (e.g. anniversary date), and they will be reminded when a credit review should be updated.
Automated Alert to Changes in Credit Score
If you have a customer that has not ordered for a while, you may not be aware that a change in credit score has occurred. It could indicate a need for a credit review update and/or a change in collection procedures. Automated alerts to changes in credit score can help to avoid unpleasant surprises.
Don’t find out about credit problems long after the fact. Find out about them early, so you have time to react and take any necessary action. Automated alerts to changes in credit score can give you the heads up needed to stay ahead of the curve.
Automating credit rules can save time, and help to improve the credit quality of your accounts receivable. Automation rules are key to an efficient and effective credit and collections process. With automated credit and collections solutions you can increase productivity and accelerate cash flow.
Lockstep Collect, a leader in cloud-based credit and collection platforms, can help you collect cash in 4 ways:
- Cloud-based solutions
- Automated customer communications
- Customer self-service
- Collections Activity Management
Lockstep Collect is an experienced software partner that can help you maximize your collections and cash flow in the new normal.
If you would like to learn more about how you can benefit from automated credit and collection solutions, please contact Lockstep Collect at www.anytimecollect.com.