Credit and collection management rationale for SME companies

Credit and collection management are essential activities for small and medium-sized enterprises (SMEs) that offer their customers the option of purchasing goods or services on credit. By implementing an effective credit and collection management strategy, an SME can help ensure that it receives timely payment for the goods or services it provides, while at the same time minimizing the risk of bad debt.

There are several key reasons why credit and collection management is important for SMEs. Here are a few examples:

1. Improved cash flow: By carefully managing its credit and collection activities, an SME can help ensure that it receives timely payment from its customers. This can improve the company's cash flow and help it avoid running into cash flow problems, which can be particularly damaging for SMEs that may not have the same access to financing as larger companies.
2. Reduced risk of bad debt: By carefully evaluating the creditworthiness of its customers and setting appropriate credit limits, an SME can minimize its exposure to the risk of bad debt. This can help the company avoid the financial losses that can result from customers failing to pay their bills.
3. Enhanced customer relationships: By providing its customers with clear terms and conditions for credit purchases, and by following up promptly on any late or missed payments, an SME can help ensure that its customers have a positive experience. This can help the company maintain good relationships with its customers and improve customer satisfaction.
4. Increased profits: Ultimately, the goal of credit and collection management is to improve the company's bottom line. By ensuring timely payment from its customers and minimizing the risk of bad debt, an SME can increase its profits and achieve better financial performance.

In conclusion, credit and collection management are important activities for SMEs that offer their customers the option of purchasing goods or services on credit. By improving cash flow, reducing the risk of bad debt, enhancing customer relationships, and increasing profits, effective credit and collection management can help SMEs succeed in today's competitive business environment.

Qube Credit & Collection Management Added Value

PRI® CrediSoft is a proprietary receivables credit platform supporting credit management processes supported by Qube Servicing. The platform manages and integrates collection workflows and tasks:

• On a daily basis as wells as intraday PRI® CrediSoft manages, controls and monitors all collection tasks defined as part of credit management:
  • Main workflow
  • :Subflows such as
    • Promise to pay, and
    • Disputes;
• Receivables portfolio performance via Dashboard functionality;
• Administration, Debtor and Receivables information accessed via Agenda and/or Debtor section, and detailed information generated in the Reports section;
• Supports debtor communication as well as (internal) client communication by mail, multi languages, as part of the collection worklow tasks, incl. logging as part of tasks performed;
• Enables access to specific Debtor, including Receivables, workflows to third parties such as credit insurers, credit collection agencies and/or bailiffs providing when required;
• And supports Voice over IP.

PRI® CrediSoft has been developed based on experience by Qube Servicing with market offerings and with the objective to enhance user friendly and efficiency of the credit management application supporting the collection process.

Compared with the market the service and functionality offered by PRI® CrediSoft proofs to be excellent and evidenced by demo on request.