Get the Skinny on Integrated Credit Management
Today, it’s difficult for businesses to attain credit lines from their banks. As a result, good credit management and customer cash may be the best options to finance a business’s daily operation, provide working capital and generate profits. What is integrated credit management all about? Integrated credit management is the process of:
- Analyzing, managing and maximizing the financial risks of operating a business. A business is only profitable when invoices are paid by customers.
- Maximizing client value by concentrating on the commercial value of the client for a business in terms of profitability and revenue.
- Implementing financial relations management in alignment with customer relations management and business goals. Good relationships with clients yield a positive effect on payment and client loyalty.
- Setting up systems, procedures and people in a business via cooperation and communication throughout the whole supply and financial chain. It’s an integrated approach.
- Utilizing integrated automated solutions in order to disclose information in an efficient and centralized manner. All of a business’s departments can be kept in the loop.
Knowing Your Customers
With an integrated credit management approach, there is always a major focus on knowing your customers, the market and your competitors. What is the relative position of your company in the market? What do customers buy from you? How important are your products to your customers? An integrated credit management approach will help answer these questions and actually define the existence of your business. Without the answers to these questions, it is almost impossible to improve the performance levels of credit management for a business.
Today, automation plays a key role in integrated credit management. However, it’s important that you have a clear idea of how your business runs, so you can define policies and procedures that can be translated to software. The software itself will not ensure success; what your business does with it will. With an integrated approach, customer relations management, query management and credit management are all integrated into one automated system.
If you’re in business and struggling with credit management and would like to know more about these software systems, you can get advice from a non-profit credit counseling agency. A non-profit credit counseling agency has certified financial advisors who are qualified and knowledgeable about business operations and business software. Once you’re assigned an individual advisor, they will carefully review your facility’s operations and assist you with implementing strategies for increased profits, including integrated credit management software.