Boost Cashflow, Transform Customer Relationships & Make Your Teams Shine with Credit Management Automation

Lilia Abdmoulah

Credit management is a vital function for any business that deals with customers and suppliers. It involves assessing the creditworthiness of potential and existing customers, setting and enforcing credit policies and terms, monitoring and collecting payments, and managing credit risks. Credit management can have a significant impact on cashflow, profitability and the reputation of a business. In an unstable economic landscape, being able to do this efficiently and effectively becomes a necessity rather than a nice-to-have. 

However, credit management can also be complex and time-consuming, especially if it is done manually or with outdated systems. Many credit teams face challenges such as:

  • High costs & inefficiencies due to repetitive & low-value tasks
  • Complexity of gathering data leading to slow & inconsistent decision-making
  • Limited visibility & control over the credit portfolio due to lack of analytics & reporting, leading to increased risks, errors & non-compliance

Cover the basics first

To overcome these challenges effectively, credit management needs to be transformed with automation.

No credit management process works without functions such as data collection, credit scoring, credit limit setting and credit approval. Automating these means integrating with internal and external data sources, applying predefined rules and algorithms, and generating credit recommendations. Additionally, not only are processes themselves automated, but simple, day-to-day decisions as well. This reduces costs, errors and delays, all while ensuring consistent and objective credit policies and terms.

Address risk issues head-on

To protect the business from potential threats and losses, automated credit risk monitoring can track and alert shifts in customer payment behaviors and credit agency rating adjustments as well as trigger and execute collection actions and reminders. This enhances the security and stability of the credit portfolio and minimizes bad debts and write-offs.

Make & maintain meaningful connections

Linking credit teams to their entire ecosystem, whether it is external partners (credit bureaus and insurance providers) or internal stakeholders (Collections teams, Sales teams) minimizes risks while maximizing revenue. Establishing and maintaining positive and productive relationships both internally and externally is facilitated by the creation of trackable communications records and built-in API integrations for partners.

Recognize & value talent

Rather than having Credit teams handle mundane work such as reviewing secure customer accounts, credit management automation takes over the low-risk decisions and prioritizes tasks. This way, they can focus on work that really matters, like dealing with mid- and higher-level risks and building and enforcing credit policies. Better recognition of the team’s value and more interesting work result in better talent retention.

Dare to innovate

To free up the resources for future-proofing your business and keep a competitive advantage, credit management solutions use a variety of AI capabilities to automate the day-to-day while providing insights and actionable recommendations for the more complex decisions. 

The results of implementing a credit management solution include: 

  • Reduced costs
  • Protected revenue & cashflow
  • Facilitated faster & consistent credit decisions
  • Reduced errors, fraud & non-compliance

In order to adapt to a continuously changing market and customer needs, credit processes, policies and systems need to be continuously evaluated, making credit management not a one-time project, but a continuous journey. Esker Credit Management can transform your Credit Management team into true guardians of financial stability for your business.

Author Bio

Lilia Abdmoulah

Lilia ist seit über drei Jahren Product Management Specialist bei Esker und hat sich auf die Esker Credit Management-Lösung spezialisiert. Zuvor arbeitete sie im Bereich Kreditversicherung und hat einen Master-Abschluss in Management von der Emlyon Business School.

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