Credit Monitoring

Credit Monitoring

Continuous Monitoring of Customer Risks

Credit monitoring is a very important component in every organization’s credit management. This means putting in place an ongoing monitoring of business partners and a systematic credit check, which can be carried out based on individual customers, groups of customers, credit rating or the amount of credit granted. The credit monitoring process checks that the credit limit granted to a customer is not exceeded, that payments are made on time and that credit securities are still valid and sufficient to guarantee a customer’s credit. It also involves regularly checking and updating all the data that the original credit decision was based on, such as customer’s current credit rating, payment behavior, buying behavior, etc.

 

Credit monitoring needs to ensure early identification and proper assessment of increased risk that can result from a drop in credit rating or a loss in value of the credit securities provided by a customer. Armed with key insight and up-to-date information, credit managers are in a position to trigger follow-up activities within the credit management process. A positive risk trend indicates that the relationship with the customer may well be expanded, while a negative development calls for reducing or securing the risk. In terms of reducing or preventing risks, credit managers have a variety of options at their disposal, such as reducing a customer’s credit limit, blocking a business partner, putting orders or deliveries on credit hold, adjusting a customer’s payment terms, intensifying dunning procedures, etc.

Ongoing Credit Check – Complex Handling

Credit management relies on proper system support to make informed decisions on a customer’s creditworthiness. It is only possible to handle the complex credit management processes in a timely manner if they are integrated in SAP. Credit managers have to make decisions quickly while properly assessing the risks arising from a certain business relationship but without hurting the relationship with the customer. System integration means that things get done faster and with less manual effort. When a decision is made quickly, orders can be completed and delivered faster. An efficient credit management that is integrated in SAP not only reduces the risks to your organization but also increases customer satisfaction through quicker delivery.

 

SOPLEX CM is a solution that SOPLEX has designed with the purpose of organizing and implementing all credit management within an organization. This solution includes best-practice scenarios and pre-configured processes that provide valuable support to credit managers and employees in accounting and meets all the requirements of a modern credit management solution. 

 

Why don’t you see for yourself what the credit monitoring tool of our SOPLEX CM (Credit Management) solution can do for your organization?