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5 reasons to automate your credit management processes


In future, companies with automated processes will enjoy a competitive edge. Learn more about the benefits of automating your credit management processes in this article.

What are the hallmarks of successful companies today? They succeed in combining automated processes with human intelligence to create a basis for growth.

«Excessive reliance on manual processes hinders growth and results in stagnation. This is why successful finance teams opt for automated workflows», says Daniel Schneider, Senior Business Consultant at Dun & Bradstreet.

Credit management staff are constantly working on preventing debt defaults and minimising credit risks. To this end, they are monitoring the most important KPIs of their customers or suppliers, which often involves manual workflows.

Automating your workflows in credit management offers the following benefits:

1. All data in a single system – and always up to date

An automated credit management solution enables companies to store all of their data in a single system. Information from the Dun & Bradstreet database is transferred automatically via an interface into your ERP or credit management software, so that all data is readily accessible and always up to date. As a result, you benefit from improved data quality and better coverage of your entire portfolio.

2. More time for strategic matters

Automation can redefine manual workflows, allowing finance teams to spend less time on administrative tasks and more time on strategy.

For example, automated processes enable finance teams to focus specifically on business partners with a high risk of default.

In practice, this means that the system automatically indicates if a business partner’s credit rating or payment behaviour deteriorates, for example. For customers with the highest risk of default, credit managers regularly check the KPIs and initiate measures early on, for example by contacting a customer, obtaining important information about their situation and deciding on the further course of action. “Our aim is to continue to generate revenue while keeping the risks under control. This way, credit managers become business enablers who take charge of strategic issues and systematically minimise the risks of default”, explains Daniel Schneider.

3. Fewer errors, quicker action

Reducing errors is another good argument for using a credit management software or a direct interface between your ERP and the Dun & Bradstreet database. The system issues automated warnings to help reduce errors, enabling credit managers to identify a business partner’s risk of default and to take action more quickly.

4. Automated credit decisions

Your credit policy defines what is to happen if a customer’s payment behaviour deteriorates. With an automated interface and a clearly defined credit policy, the system can automatically approve or reject credit applications.

It is also possible to integrate an individual scorecard, in which you can specify the weighting of KPIs in a credit check.

5. Customised data packages

With a direct interface between their ERP or credit management software and the Dun & Bradstreet database, finance teams have the option to import only data that is relevant to them. This is made possible by the D&B Data Blocks,

which standardise and categorise data into blocks. Users can freely decide on the size of the data package and how much information they require. This way, they are able to retrieve only the data that they really need and focus on the information relevant to their business.