Stop with what you are doing when one of the following applies:
- Your company does not have credit management software.
- Your company has credit management software, but updated it for the last time more than a year ago.
If so, then update your to-do list today and put credit management software at the top of that list. Why? Credit management software is your partner for a predictable cash flow during a crisis.
Prepare for a crisis
Both the financial crisis and the COVID-19 pandemic surprised most people. Many companies were limited or unprepared for the impact both had on their own cash flow. Customers paid later, did not pay, or even went bankrupt. And a new crisis is undoubtedly already in the making. If it is not because of rising inflation or rising interest rates, then it is the massive pile of debt that continues to grow.
Companies don’t control the economy and customers, but they do control the preparation for the next crisis. For example, in the form of hiring skilled employees and the implementation of credit management software.
In a previous blog post, we wrote about a business case for credit management software. That article discusses what it does, the investment, and tells you what to look for when purchasing software. There is one more important item, and that is why it is important to invest now. And why you have to think about that again in a year. Or, better, why it needs your ongoing attention.
Why you need credit management software
Scaling, controlling and adaptive. That’s why you need credit management software. People are good at judging exceptions and having personal conversations. But what if the number of customers that require a review for behaviour and risk increases from 25 to 500? People don’t scale very well, but software does. It keeps performing tasks consistently and in case of new parameters, they are applied without any problems.
Software sends 900 text messages just as easily as 50. It tracks the behaviour of individual customers and responds when it changes. This can be in the event of a trend break in turnover, a change in payment days or other variables. Credit management software automatically acts based on parameters and alerts an employee when necessary. You want to fine tune settings continuously so that the software is always up-to-date.
Keep updating the software
Software requires maintenance. Both the underlying technology and the world are changing, and the software has to evolve —on a technical and settings level— with it. If you don’t this, there is a chance that you will still be unprepared. Because when the crisis starts, you are too late. You therefore want flexibility in the software because what you implement today may no longer be sufficient in a year’s time.
Flexibility is a requirement
We believe that one-size-fits-all does not fit, or at best it rarely fits. No company and crisis are the same. There are similarities within an industry, but systems and the way of working differ per company. That’s why you want credit management software that’s flexible. It should adapt to your situation and requirements, and not the other way around. That way, you ensure that the software actually does what you want so that you are ready for tomorrow. At CE-iT, MA!N comes with a good dose of flexibility by default. If you want even more flexibility, you can take it to a higher level with our low code component.
A crisis doesn’t announce itself through a blog post, and that is why you should invest in credit management software today.