Management of the credits
For tracking the level of profit by cooperation with customers, for successful credit activities and for full understanding of how the cost is created in the company, in all these, the financial manager is helped by the easier access to the conformal financial information. Thus, managers in sales, finance and marketing can make informed decisions regarding customer relationships and the balance of income and expenditure of the company with more efficient and less costly supply chains.
Management of the accounts receivable and credits
Recently, the management of the accounts receivable and credits of one of the major companies has been outsourced. During the last two decades the business model of this company has undergone extraordinary changes. First, the company’s monopoly was brought to a stop due to the cancellation of price regulation. Further, it was faced with competitors that had appeared at the market. Currently, the company has to fight for clients, to undergo many risks, which it didn’t know so far. And the most significant risk is the credit one.
The model of “full consolidation” presupposes the full range of services and, moreover, all accounts information is transmitted to the consolidator. According to the “model of partial consolidation” the consolidator receives only the final amount (including taxes on sale/purchase). The client is then redirected to the company website for more information on the account.
With the development of industries, customers began to demand higher levels of service and providing access to information relating to such services. The method of direct billing is a key factor to meet the initiatives of the client, as demonstrated in the following situation.
The same provider is used also for centralized control of lending, making it possible to reduce debt and to manage credit. The automated process of decision-making online, the employees’ access to internal and external credit information, as well as the integration of distribution channels are needed for the organization credit policy. Another area, that can work on value creation at outsourcing, is the assessment of credit risks.