A Risky Proposition: Not Using Order To Cash Software For Credit APplication And Credit Scores
CREDIT APPLICATION AFFECT CREDIT SCORE IN ACCOUNTS RECEIVABLE SOFTWARE
When choosing technology for streamlining order to cash processes, credit applications are frequently overlooked, yet can be particularly crucial component for driving total revenue and cash flow. Most notably, credit applications can have big impact on credit iscoring and accounts receivable management. Considering the risk inherent in foregoing the use of software for managing credit applications is instrumental for astute financial executives in ensuring their business does not suffer avoidable losses.
In the absence of credit application software, the task of implementing, managing, and auditing various form types, associated contracts and liability waivers, as well as credit checks and verifications can quickly become overwhelming and ill-fated. Many businesses that decide against automation of these processes rely on manual entry to verify information, process that over time may become cumbersome, expensive, and inefficient. Financial overseers should consider these risks and how automation of credit applications can progress accounts receivable performance and negate some of the unforeseen costs.
By implementing order to cash software, financial executives have more reliable way to ensure that credit iscore requirements are satisfied and credit applications are approved on-time. Using software for managing credit applications, streamlines tedious and monotonous paperwork, by eliminating the need to manual inspection of loan documents and the cumbersome task of verifying and mining potential customer credit data. Not to mention, automating credit applications can aid in forecasting and spotting trends in historical data, enabling executives to make educated decisions in timely manner.
The propensity of finance executives to reject order to cash software for credit application management is wide-reaching. This can include unfamiliarity with it, or doubts around its efficacy. Such pessimism, however, fails to consider the suite of tools made possible by software. These include automated credit forms that can be customised, as well as integrations with external databases such as those from credit reporting agencies. Furthermore, application software is equipped with powerful analytics and regulatory compliance features.
In most cases, manual credit application processing introduces numerous risks, not to mention it could be cost-prohibitive for many businesses, particularly for small to medium-size enterprises. Financial leaders should therefore be mindful of the potential losses associated with both manual processing and the use of automative software for managing credit applications, to ensure an accurate evaluation of this component of order to cash.
Notably, risk of cost and losses associated with not automating credit applications can be managed favorably with software that fast-tracks and automates the credit process, and helps protect against non-payment. Ultimately, financial executives should carefully consider the ramifications of not using software for credit application management when making expenditure decisions on order to cash. This includes risks related to credit iscores which, when properly selection and implemented, can assist in bolstering revenues and safeguarding accounts receivable performance.
