Online credit applications are becoming popular among businesses looking to streamline their customer onboarding processes. A traditional business may be wary of adapting to new technologies, such as online credit applications, but there are many advantages as business becomes increasingly fast-paced.
Let’s take a step back to the principals of credit management and its role in business. We often misconstrue the role of the credit department, diminishing it to simply collecting money when it is due. This is somewhat correct, however, the team is also there to support and work with the sales department as they move through their sales cycle. The credit team will determine:
• If the prospective customers are who they say they are
• If they have the capacity to pay
• Whether there is previous bad payment history
• If the directors have any adverse information against them and so much more.
The credit team will (or should) be consulted along the way, but this component can often drag out the sales process which leads to longer sales cycles and, potentially, leaves the prospective customer looking elsewhere. No business would appreciate that!
So, let’s imagine this scenario:
Your company’s sales manager is about to finalise a large deal that includes an ongoing supply contract over a 24-month period. Before signing off on the contract, the sales manager ensures the potential client completes the company’s credit application.
After submitting the application (including all terms and conditions, guarantees and any special requirements), the sales manager waits for the response from the credit department. Instead, however, of needing to wait for the credit department to manually check all details, request and review a credit check and then process this internally, the online form has already done all this!
Within a minute, the credit team receives the signed credit application and confirmation that this business is in good financial health. The sales manager completes the sale with barely enough time to finish their coffee.
So, why use an online credit application?
1. Instantaneous data checking of the correct legal entity
2. Fewer hours spent manually processing for the credit team
3. Timely response rates for the credit and sales team
4. Electronic storage and electronica signature options
5. Professionally built to look seamless with existing branding
Let your business enjoy the benefits of online credit applications.
Contact NCI, leaders in trade credit solutions, today on 1300 654 500 or via email.
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