The importance of end-to-end credit control in one system An efficient credit management system is beneficial to any business. Access to all receivables functionalities in one place minimises late payments and speeds up your processes - improving your business’ cash flow and efficiency. This article is
C
redit management can be broadly categorised into four sections: • Credit analysis and risk management • Collecting cash • Managing disputes • Managing debtors
To empower you when making crucial decisions, use a platform that facilitates in-app business credit checking. You’re able to categorize customers based on different criteria. It’s possible to score them based on financial behaviour and attributes.
The overall aim is to have customers pay invoices on time and according to the predetermined terms.
You’ll have a better perception of risks, as you can calculate and monitor credit limits and identify business opportunities. You’re able to make informed decisions about your business and business partners confidently.
An efficient credit management system is beneficial to any business. Access to all these receivables functionalities in one place minimises late payments and speeds up your processes - improving your business’ cash flow and efficiency. A good example of an end-to-end credit management software is Chaser. With Chaser, you can count on support throughout the entire credit control journey. You’re able to credit check which customers to grant credit to, chase payments, set up payment installment plans, collect payments via your Payment Portal, and escalate to debt collections. 1. Credit check With 48% of all invoices issued paid late every month, making sure you are ‘in the know’ about your customers and extending credit to those who are willing and able to pay you is essential.
32 / Issue 28
2. Monitoring and communicating with debtors Regular monitoring of outstanding debts and communicating with debtors is essential to the health of your receivables, this helps to identify overdue amounts, consistent late payers, and ensure you are following up on them with the necessary course of action. Having a streamlined system makes it possible to view all debtors, communications and replies, and automate tasks like sending payment reminders. By integrating with your accounting system, you can ensure you’re always working with the most up to date debtor information and reports. 3. Chase late invoice payments Chasing overdue invoices can be hectic and time-consuming.
@chaser_hq
Sonia Dorais, Chief Executive Officer, Chaser With nearly 20 years of experience working in fastgrowing businesses, Sonia is the CEO & CMO of Chaser. Prior to this role, Sonia led the growth of numerous fintechs in both Canada and the UK that specialised in the digitisation and automation of finance and accounting tasks and functions.
To overcome this challenge, make use of a sound credit control system such as Chaser. You’re able to set polite payment reminders for follow-ups. Chaser comes with a centralised hub or receivables ‘CRM’ that automatically documents your chasing activity for each customer. This reduces your workload and eliminates the possibility of errors such as contacting one customer multiple times. 4. Offer payment plans Large invoices often serve as a deterrent to customers clearing their balances quickly as they could be struggling with cash flow. Flexible arrangements allow customers to make partial payments for a defined duration. Credit management software enables you to set customised payment plans, adjust, and keep a record of payment arrangements. Systems like Chaser can send your customers notifications to confirm the arrangement, chase installments, and track payments made against plans. 5. Collect payments Giving your customers access to a payment portal to pay their invoices facilitates several selfservice options. Besides reducing your workload, it gives customers a greater level of control over how they pay you.
XU Magazine - the independent magazine for Xero users, by Xero users.
