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Within my 30 years’ experience in the creditmanagement profession, I have seen many mistakes made in B2Bcreditmanagement; these mistakes, if not rectified, run the risk of negatively impacting cash flow and customer relationships. The post Are you making these four B2Bcreditmanagement mistakes?
Managingcreditrisk for B2B customers is critical for seamless order to cash (OTC) and working capital cycles. Businesses that follow traditional reactive strategies in OTC processes may find it difficult to collect at-risk future invoices, likely leading to large invoices going delinquent.
Managingcreditrisk for B2B customers is critical for seamless order to cash (OTC) and working capital cycles. Businesses that follow traditional reactive strategies in OTC processes may find it difficult to collect at-risk future invoices, likely leading to large invoices going delinquent.
According to a Harvard Business Review study, 89% of large companies globally have initiated digital and AI transformations , yet they have only realized 31% of the expected revenue lift and 25% of anticipated cost savings across multiple domains, including creditmanagement.
OTC, the main cash flow driver, has many subsets within it, and creditmanagement is more important than it looks on the surface. The top line and bottom line will be positively impacted when a sales order is received and fulfilled, but your business is at risk till you collect cash against the invoice.
For B2B businesses, creditmanagement is essential for accounts receivable (AR) management success. Proper, healthy creditmanagement allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . External and Supporting Data .
This technological advancement represents a significant departure from the manual, relationship-based credit assessments of the past, offering a more efficient and inclusive financial landscape. AI has revolutionized creditrisk assessment by uncovering insights that were previously difficult to detect.
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