Credit Management Process
The credit management process is a process that provides insight into the outstanding payments of debtors, among other things. This insight is important because it immediately shows the liquidity or cash flow of your company. Maintaining a healthy cash flow is something every organisation strives for. That is why it is so essential to optimise the credit management process.
Optimise credit management process
How do you optimise the credit management process? First of all, it is important to take stock of what your company is already doing in the field of credit management. On the basis of this, improvements can be made, for instance in the area of speed, efficiency and effectiveness. There are several steps that form the basis of a credit management process. Accounts receivable management is one example, but so is the optimisation and management of cash flow in the financial and operational areas. By improving these components, a strong liquidity position is created.
Credit management tips
Successful credit management depends on good communication and information. Receiving payments is an important part of doing business and credit management takes a lot of time. A customer who does not pay, costs time and energy. First of all, you need to keep track of which invoices have been paid and which have not. A late payment requires action and that takes time too, because you have to contact the debtor. This can be done by calling or sending a reminder. If you do this too late, it will affect the company’s cash position. One of the credit management tips that offers a solution is to use credit management software to automate your accounts receivable management. The good thing is that this software can easily be linked to several accounting and invoicing programmes, enabling the software to remind you from the first invoice to the last reminder.
Credit management software
Using our credit management software is one of the best tips for improving the credit management process and keeping control of your company’s financial situation. The outstanding amounts can be seen at a glance in a clear dashboard and the software provides automatic follow up of invoices. All set up according to your wishes and those of your customers. It is also immediately clear which stage of the payment process a customer is in. There are therefore several advantages to using software to efficiently organise the entire credit management process.
Benefits automate credit management processes:
- Automatic follow up of invoices
- Consistency in approach to your customers
- Option for different payment methods
- Checking creditworthiness of existing or new customers
- Insight into credit risk of existing customers
- Automating payment arrangements
- Financing of outstanding invoices
Start Payt credit management immediately
Do you want to optimise the credit management process within your company in a simple way, thereby improving your company’s liquidity? Then take advantage of all the benefits Payt software has to offer. We will give you the opportunity to get acquainted with Payt credit management software free of charge. Start the free 30-day trial period immediately and discover what Payt can do for your organisation. In addition, Payt can be terminated on a monthly basis. Want to know more about credit management? Read everything about credit management here.