Risk Of Forgoing Software For Credit Control


For finance executives charged with managing cash flows, the pursuit of tailored credit control solution can be daunting task. Understanding the risks associated with not using software as solution is essential in making the right decision.

Large corporations, in particular, have complex cash flow and order to cash requirements, meaning that relying solely on manual processes or off-the-shelf software can be inadequate. When assessing the risk of forgoing software for credit control, it is best to consider the implications at all points of the order-to-cash cycle.

One of the most pressing challenges lies in the management of potential debtors. Manually processing credit applications, verifying creditworthiness and making decisions to extend credit can be extremely time-consuming. Automating this process and integrating it into other back office functions can significantly reduce the risk of not processing accounts in timely manner and missing opportunities to collect debts.

For enterprises with multiple trading relationships spread across diverse geographic locations, manual processes are often inadequate for providing broad overview of credit exposures. Software enables credit professionals to gain single view of all customer accounts, leading to improved credit decision-making and greater purchasing efficiency.

Managing customer accounts and collection activities can be problematic without the automation of software. Issues like sustained late payments and the unwillingness of customers to pay can block cash flow. Automated software gives credit departments real-time access to customer data, enabling better tracking of accounts and control over cash flow.

Managing customer disputes is another area that can prove challenging without the use of software to automate the process. Automated dispute management and resolution enables companies to maintain close customer relationships and minimize the financial and operational disruption due to prolonged dispute resolutions.

In summary, it is clear that the risks associated with forgoing software for credit control solutions are significant. Having the right software in place helps to optimize the order-to-cash process and provide organizations with real-time visibility into customer accounts, resulting in improved operational efficiency and financial performance.