Best Practices – Online Credit Applications
Credit Application Software
Credit Application Systems
- 80% faster credit approvals
- 90% less manual work
- 5% more sales from new accounts
Online credit applications are relatively new and even the simplest offer a browser-based application filled out by the customer and then processed by the creditor (but usually completed off-line, manually). This may work for very small companies, but companies with large numbers of customers need an automated solution. A state-of-the-art credit application system from Smyyth’s affiliate Credit2B, has rich, complete features; the easiest way to explain it is:
- The customer fills out the online application, e-signs any included agreements, guaranties, forms, etc., and clicks a button to submit.
- With 100% automation, Credit2B produces a complete credit file, ready for approval, or using workflow to assign to someone else for action or decision.
- The multiple-day process, the manual work, and expense to set-up new customers and approve new orders can be slashed by 80%.
Best-of-breed features are in Credit2B’s End-to-end credit application solution for on-boarding new customers as well as managing existing ones.
“Credit2B ECOS™ delivers an online Credit Application platform that gives us all the information needed for a decision, all in one place. Their solution transformed our multi-day manual process to literally just hours.” Michael Pettyjohn, Director, Customer Financial Services, Danone
Credit2B’s advanced, fully automated credit application system replaces a mishmash of tools and manual tasks including e-mail, faxes, repetitive telephone calls, instant messaging, credit reports, hard copy files, etc. When you include data from Credit2B’s large creditor network, this results in a “virtuous cycle’, where key information nodes including industry data are always kept up-to-date.
We have streamlined credit management processes, information, communication and collaboration in such a way as to accelerate trade credit transactions.
The benefits are straightforward and the ROI is large.
- Speed. Accelerate speed of order approvals, reducing the time up to 80%, in many cases from days to just hours. If you save 5 days in new order processing, you are adding a week’s incremental revenues from new customers (2% per year).
- Costs. Eliminate almost all manual work, and the wasteful cycle of follow-up calls, faxes, emails, hard copy forms and letters.
- Accuracy. Get more accurate information direct from the source (the customer), eliminate manual entry errors.
- Better Credit Decisions from having complete and timely information.
- Customer Relations. Improve customer service with a “frictionless” process with your branding that eliminates the wait for order approvals.
Credit2B ECOS has an extensive features list, but here are some which are of interest to all credit managers.
- Dashboard for keeping track of applications, reviews, ratings, etc.
- Workflow and Calendar guides the process from the point the customer submits the application until you approve it.
- Credit Bureau Data are embedded in the application system (i.e., Experian, Equifax, Credit2B).
- Trade References are automatic, including customer-supplied references, credit group experience, and Credit2B’s massive trade database.
- Bank References are automatic, fast, and complete.
- Credit and Payment Scores are integrated, with expected payment days.
- Financials. Customer-submitted and public company financials are included automatically.
- Automatic Reviews. Based on your rules, the credit file is updated periodically. Workflow, authorization levels, and automated system updates and follow-ups keep your records up-to-date.
- Credit Risk Control. Keep files up-to-date, with monitoring and system generated updates. For example, refresh financials annually, or adjust credit lines when payment experience changes.
- Online Credit File is maintained for all documents, reports, and credit decision justification with backup.
- Compliance, Legal, Signatures. The information you need for legal compliance, including valid digitally signed agreements and documents.
- Online Sales Tax Exemption Certificate File to keep you compliant.
- Existing Customers? You can include all of your customers for automated monitoring, updates and periodic updates (such as private financials).
- Integration with your ERP, and customization for special needs are available.
In summary, if you plan to develop or license even the most simplistic electronic credit application, it will be an improvement over hard copy manual forms. However, to achieve the full time and cost saving potential of this concept, you will need to consider to an end-to-end application such as Credit2B.