Invevo Assess Is The Ultimate Solution To Have In Your Toolbox
Bringing a new client on board is certainly a cause for celebration. But before you start popping the champagne, you might want to take a moment to check if your new client is going to be able to pay their bills - and more importantly, pay them on time!
This is why credit and risk data checks for any prospects, new or existing customers are not only good practice, they are actually essential for making sure your business has money in the bank and consistent cash flow.
First, let’s take a look at what credit analysis actually is.
In B2B transactions, trade credit, or an agreement that your customer can purchase goods or services from you and pay you at a later date is a very normal process. Many businesses use it as an effective tool to encourage sales and stimulate growth. However, any time that you invoice clients at a later date, you can run the risk of late payments which can dam up your cash flow. And we don’t want that.
As the name suggests, credit analysis looks at a customer’s creditworthiness, reputation for paying on time and capacity to do so. It seeks to identify the appropriate level of default risk so you can plan effectively and take any potential failures to meet debt obligations into account.
Essentially, determining customer creditworthiness before you extend credit is an effective way to reduce your financial risk.
Credit analysis sounds really tedious, but once it’s done, it’s done - right?
Unfortunately, not. You might assume once the initial credit analysis on a customer is complete, then you’re good to go. However, this is actually far from the case. Just as your business will develop and grow, so will your customers’ businesses. You need to make sure you’re taking their cash flow fluctuations into account as well as your own. If you don’t want to compromise on your cash flow, then credit risk and data analysis need to be regularly updated and monitored.
Luckily, we have the perfect solution
At Invevo, we always want our customers to get the most out of their financial management. So, of course, we put our clever minds together to come up with Invevo Assess: the best automated solution for getting the most out of your credit and risk data on the market.
Our unique data integration with Experian creates an automated workflow across your entire customer base - this means it’s updated every single day so you can track credit risk in real-time. Never again miss an important credit data change that may impact your customer’s ability to pay. Result!
Invevo Assess is also ideal for enhancing your collections and DSO through risk segmented strategies that help you drive more targeted actions. Combine that with adding automation to remove unnecessary user tasks, and you can increase your efficiency all-round. As mentioned, risk changes daily, but this is impossible to monitor manually. Instead, we dynamically update your collections strategy so you can understand your financial performance with a 360-degree view of your customer portfolio.
Got a customer that’s consistently late on payments? We won’t let you get caught short! By keeping a close eye on things, we can minimise bad debt and slow payments. We automate credit limit reduction for all customers at risk of default and target any high-risk customers for collection to make sure they pay on time. You can also keep track of your cash collection performance by using Experian’s cash flow score as a benchmark and use this to set credit limits at a parent level to manage group account credit exposure.
Effective credit risk analysis gives you better control over your collections strategy, which means better cash flow and better customer retention. By automating credit limit increases based on customers spending and payment behaviour, you’re in a much better position to drive sales growth, too. Our intelligent order block management removes unnecessary sales blocks, so you don’t have to manually, meaning less room for human error (or just forgetting to update things!) and a seamless experience for your customers. Better customer experience means a better score on your NPS and a higher chance of bringing on more potential new customers.
We help you work smarter, not harder. So, why not join the automation revolution today and request a demo. You won’t regret it!