Credit risk
July 18, 2018

Digital Dilemma – What to Do as Customer Risk Increases

Damian Leslie  

by Linda van Kampen

Digital transformation is hard work. Companies are grappling with entrenched business processes, legacy infrastructures that are facing end-of-life issues, and data issues. But it is pedal to the medal: Most companies believe they have two years to make significant progress or face economic consequences in the marketplace. Everyone has seen the consequences of waiting. Everyone is watching the struggles of traditional companies in industries such as financial services, industrial, retail, and others, that are not playing catchup, investing millions of dollars to gain parity with top performers. Everyone wants to be Amazon, not Sears, Toys”R”Us, or PetSmart.

Given what we know about market disruption, measuring customer risk has never been more important. Many companies measure customer risk upfront and reassess when business relationships change, such as extending partnerships or changing credit terms. They need to move customer risk management into real-time. Companies operate in an ecosystem: Customers serve customers, and so forth. Any major disruption to a customer’s business integrity can impact a wide array of partners, suppliers, and customers. Given that 1 in 2 of all B2B sales is offered on credit, it’s easy to see how a few major B2B company failures could impact multiple suppliers.

That’s why we believe automating credit management is one of the 7 Fantastic Benefits of Transforming Accounts Receivable.  When you implement a SaaS-based Order2Cash portal, you can check credit risk in real-time, dynamically change credit limits to match risk, offer digital invoicing and payments, and proactively manage collection. You’ll have all tools you need to avoid a debilitating spin cycle of collections.

According to Aberdeen Research, companies that automate accounts receivable are 2.9X as likely to set credit limits based on customer risk profiles and 6.8X as likely to have predictive models for non-payment, reducing their credit risk and the potential for default or delinquent payment. Get the listicle. Don’t let your business be buffeted by customer risk.

You can measure it proactively and continuously with an Order2Cash portal, that also offers electronic invoicing, automated reminders, digital payments, and collections. Best of all, as a SaaS-based solution, Order2Cash can be connected to your ERP system via an API, implemented in 1-3 months, and begin delivering value the moment you implement it.

Learn about the 7 Fantastic Benefits of Transforming Accounts Receivable. Build relationships with the right customers: Financially healthy companies that can grow with you. Offer preferential terms to your best customers, limit exposure to higher-risk companies, and proactively manage invoice exceptions and collections to minimize their harm.

Download the listicle now.