Solution #1: Customer creditworthiness assessment
One of the missions of credit managers is to manage customer accounts receivable, using a credit policy tailored to each individual. To define this policy, it is necessary to assess the customer’s solvency, set the proposed payment deadlines and methods, and provide various remedies in the event of non-payment, all within a sufficiently short period of time to facilitate the closing of the sale.
Unified customer profiles to facilitate customer position monitoring
Creating customer profiles centralizes each customer’s payment history, across all sales channels and payment methods. Each customer profile includes key indicators on past transactions, scheduled and pending payments, and a history of payment defaults.
As a customer credit manager, you can adapt the payment arrangements (methods and deadlines) to each type of customer profile: payment terms in installments for loyal and good payers, more frequent reminders for a debtor at high risk of late payment, etc. or set up a financial scoring tool to block invoicing in the event of a score that is too low, for example in the event of repeated non-payments.
Setting up customer profiles makes it easier to quickly renew contracts and monitor outstanding receivables. It can also make it easier to record the results of credit checks for new customers.
Solution #2: Automate reminders to avoid unpaid bills
Slow invoice payments are the bane of finance, accounting, and sales departments. In France, only one in two companies pays their invoices on time, according to a recent study by the Altares group, even when the payment terms are clearly stated in the sales contract.
This lengthening of payment deadlines hinders the financial health of companies and increases working capital requirements. In 2023, a Coface payment study revealed that 82% of French companies experienced late payments, sometimes with a critical impact on their cash flow. Credit controllers therefore need a reliable payment solution.
Automation of payment requests by email and SMS
To facilitate the management of customer accounts, the automation of daily tasks is proving to be extremely useful. As mentioned above, the CentralPay account allows the unification of customer accounts (invoicing, reminders, collections, etc.). This allows for quick, easy, and automated configuration of debtor reminder notifications at each stage of the contract. These notifications can be sent by email or SMS depending on your customers’ contact habits.
Thanks to these payment request automation and debt collection services, equipped credit managers see faster invoice payment collections. Amicable debt collection is also facilitated in the event of late payment or disputes related to non-payment. In short, greater peace of mind for the credit manager!
Solution #3: Monitoring customer payments through automated reconciliation
In finance and accounting departments, it is essential to track and record entries and exits efficiently. LWhen the amount cannot be used as an identifier for payment reconciliation, for example, when invoices have identical or, worse, incorrect amounts, the manual reconciliation process cannibalize the accounting department’s resources. Managing customer payments becomes time-consuming.
There’s no need to remind people of the fatigue and lack of added value brought by long sessions comparing invoices and payments. In concrete terms, this step of checking incoming payments for errors (references, amounts, etc.) tends to become a source of frustration.
Setting up a virtual IBAN
By integrating virtual IBANs, each SEPA transfer or instant payment automatically associates a payment with an invoice reference, its status (issued, approved, in dispute, settled, etc.), and a customer. This makes tracking payments much easier!
This automation provides real-time traceability and visibility into payment requests sent, funds received, upcoming recurring payment deadlines, and funds still pending. This way, invoices are processed faster, error-free, and with better tracking.
These automated reconciliations save time on a daily basis, but also provide an opportunity to improve financial performance monitoring. Having a clear and comprehensive view of current and upcoming payments and their due dates facilitates the management of receivables, cash flow, and, more broadly, the company’s financial strategy.
