SUCCESSFUL CREDIT AND RECIVABLES MANAGEMENT
The management of supplier credits and receivables is as important for the continuity of a company as the generation of turnover. Credit managers would have to determine which payment terms are granted to the customer in order to minimise default risks in advance due to unpaid or late payments. After delivery of the object of the contract, the credit manager monitors the receivables and, if necessary, accelerates the receipt of payments through a targeted dunning process.
Internal and external data must be taken into account when assessing risks and monitoring incoming payments. From a certain volume onwards, this can hardly be done manually and on time. At this point at the latest, effective software should be used that covers the relevant areas in credit and/or receivables management.
Collenda software solutions enable reliable management over the entire credit life cycle. Open Credit Credit Management, for example, has interface connections to credit agencies and offers daily updated data for the assessment of credit risk. When creating own scorecards, these values can be included in the evaluation for granting supplier credits. The payment flow is automatically initiated and monitored by workflows in receivables management with Open Credit Debt Management or S4Dunning. The systems support the users in their daily business and facilitate the dunning process. Different data sources are unified by the Collenda software and enable meaningful, reliable reporting at any time for every stakeholder. The connection to the existing ERP system is easy to implement.
CHALLENGES OF THE CREDIT MANAGER
Credit managers have to identify risks and avoid bad debts. To do this, they rely on data from different sources and from people in different areas – both internal and external. The trick is to satisfy all parties involved, even if their interests sometimes compete.
Collenda software solutions enable credit managers to process figures, data and facts from different sources in a uniform manner and thus make well-founded decisions. In this way, risks are already minimised at the beginning of the contractual relationship. If a default occurs, the system automatically guides the customer through the next steps according to the previously defined processes. This ensures that no invoice and no reminder is left undone for lack of time. The current status can be called up at any time.