five steps to managing credit and collections risk in unpredictable times
TRANSCRIPT
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Transform Your Credit and Collections
Five Steps to Managing Credit and Collections Risk in Unpredictable Times
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In these uncertain times, corporations risk higher
defaults and less predictable payments. By focusing
on just five steps, credit and collection professionals
will be prepared to better manage such risk, help
grow sales and increase cash flow more effectively.
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Step OneGreater Automation
is Key to Managing
Risk and Increasing
Cash Flow
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To what extent have you automated your credit and collections processes?
5%
95%
Fully automated Not fully automated
By not leveraging full process
automation solutions, credit and
collections processes are
operationally inefficient and the
visibility that managers need to
effectively manage credit risk,
prioritize collections and resolve
disputes is greatly reduced.
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Step TwoMitigating Credit Risk
Starts with Frequent
Portfolio Reviews
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How often do you score your portfolio?
40%
20%
20%
20%
Infrequently / Never Annually Quarterly Monthly
Failure to properly assess credit risk
on a frequent basis can negatively
impact sales, increase bad debt write
off and significantly impair cash flow.
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Step ThreeLeveraging Predictive
Analytics Helps You
Effectively Prioritize
Collections
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Are you still using traditional methods such as age and value to prioritize collections?
Best-in-class companies are
adopting artificial intelligence, such
as predictive analytics, to prioritize
collections.
This method leverages customer
behavior data to predict future
delinquency and drive more accurate
collections prioritization strategies.
41% are using age
35% are using value
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Step FourAutomatically
Segregating Disputes
Helps You Collect on
Part of the Invoice
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Are you holding up the entire invoice when you have a dispute? Are you utilizing advanced dispute management workflow?
Holding up an invoice has a direct impact
on DSO and can tie up credit limits.
Automated, rule-based processes isolate
problematic invoices and make
appropriate deductions, route disputes to
the relevant team, prompt approvals, and
collect the undisputed element of invoices
– all without human intervention, thereby
helping increase sales and cash flow.
38% hold the entire invoice
55% are not operating
intelligent dispute
management or advanced
dispute management
workflow
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Step FiveAutomating the Cash
Application Process
Provides a Real-time
View into Cash Flows
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What are your straight-through cash application rates?
By not leveraging full process
automation in the cash application
process, corporations are at risk of
misapplied payments and backlog as
well as inaccurate credit limit
exposure, which impacts sales and
real-time visibility into cash flow. Achieve less than 91% Achieve 91% or more
17%
83%
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13
.
Having automated our credit and
collections, we reduced our past dues
by 82% within a couple of months.
Automation Has Proven Results
JEROEN VAN LOENEN, SENIOR CREDIT
CONTROLLER, KONICA MINOLTA
BUSINESS SOLUTIONS NEDERLAND BV
In order to gain visibility and control
around our cash and risk and
improve productivity, we centralized
collections in North America and
automated credit and collections in a
cloud environment.
NADIA UHAC,MANAGER, COLLECTIONS,
LAFARGE NORTH AMERICA
By automating our credit and
collections, we reduced our
outstanding collections over 90 days
by 74%...on average, DSO has
reduced by 15 days.
JACKIE GRIFFITHS,
CREDIT MANAGER, NEOPOST LTD.
Automation and predictive analytics
uncovers true collections risk accounts
versus those accounts most likely to
self-cure, enabling us to maintain our
collections staff levels with customer
growth and continue to be effective.
CLAIRE CLONAN, DIRECTOR OF RECEIVABLES
AND RECOVERY, MANAGEMENT, WEX INC.
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FIS’ GETPAID can help you take these
five steps and transform your credit
and collections.
Let’s have a conversation.
Contact us today.
www.fisglobal.com/corporatesolutions
All data sourced from FIS’ Managing Credit and Collections Risk
through Unpredictable Times, a 2017 survey of 264 credit and collections professionals.
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