Top Credit Management Tools for Businesses

Credit management is a critical process that enables businesses to evaluate and minimize risks when offering credit to customers. This involves assessing their creditworthiness, monitoring payment behavior, and setting credit limits.  

Efficient credit management is crucial for businesses to help them maintain a steady cash flow, achieve financial stability, and avoid losses due to unpaid bills or debts. It can also help them build a strong credit history and reputation, which can lead to better financing options, more customers, and favorable payment terms with suppliers. And this is where credit management tools come in. 

As seen in the Asia-Pacific region in 2020, around 26% of companies used credit management tools for their credit reports, underpinning its importance. And as more businesses realize the importance of credit management, the more these tools will be in demand. 

That said, this article offers insight into the top credit management tools that can be handy when looking for credit management software providers for your business. Read on.

1. TurnKey Lender

    TurnKey Lender is a top cloud-based credit management software ideal for businesses of all sizes. This platform can help automate every step of the lending process, including credit applications and borrower evaluation, servicing, collection, and compliance, among other benefits. It also offers credit monitoring and alerts, comprehensive customer credit assessments, and credit limit setting.  

    Moreover, you can leverage the platform’s ability to help with payment tracking and reporting, customizable credit policies, and integration with other business systems with an Application Programming Interface (API) access.

    2. Decisions

      Decisions is a no-code business automation solution that deals with data handling, business rule execution, and process automation. It can handle a vast expanse of management processes, including customer credit. The platform can help you avoid entering insolvent liquidation that recorded 22,109 Creditors’ Voluntary Liquidations (CVLs) in the UK in 2022. 

      Like TurnKey Lender, Decisions can meet all key requirements in a credit management tool, including credit monitoring, credit limit setting, creating customizable credit policies, and offering payment tracking and reporting. However, it’s best to know the pricing plans, as monthly fees can be high, to help you weigh your options better.

      3. Axe Finance

        Artificial intelligence (AI) for the risk management market can reach USD$68.5 billion in 2030, and emerging tools like Axe Finance seem to contribute to this. This credit risk management tool is a cloud-based and AI-driven solution, helping lenders provide efficient, seamless, and competitive omnichannel financing journeys for their clients in all commercial, retail, and corporate segments. 

        It provides credit risk management solutions to various clients, including banks and financial institutions. Notable global lenders, such as Fidelity Bank, Société Générale, First AbuDhabi Bank, Vietnam Bank, and Al Rajhi Bank, among others, also trust Axe Finance. 

        This credit management platform can be integral in your project management accounting if you want to extend credit to clients. It can seamlessly help you set credit limits, assess customer credit and monitor credit and alerts. Moreover, it can analyze trends and complex debt structures and manage documents, among other helpful credit management functionalities. Axe Finance also offers API access for other software integrations, including Nucleus, Temenos Transact, and Finacle.

        4. CreditSafe

        This credit management tool is known for fraud detection, which adds to its impressive credit management capabilities that include credit monitoring and alerts, payment tracking, and reporting, among other functionalities. CreditSafe also ensures that your business is compliant with Know Your Customer (KYC) requirements through rigorous screening and performs anti-money laundering checks that verify customers for whom they claim to be. 

        CreditSafe also focuses on sanction monitoring and screens customers and suppliers against politically exposed person (PEPs) lists. Moreover, the tool can track clients’ financial performance to determine whether or not lending them money is prudent. This helps ensure you don’t offer credit to dishonest and untrustworthy businesses and clients. Still, you can get a credit score and maximum recommended credit limit for every client you engage.

        5. Serrala

          This credit management tool for businesses is a trustable global B2B payment and financial automation software that aims to create more secure global finance and safer treasury capabilities worldwide. Serralla can help you accelerate your debt collection by improving efficiency through automation and can be a practical strategy in lowering Days Sales Outstanding (DSO) and increasing liquidity. 

          This platform offers solutions, including cash management and forecasting, collection and disputes, credit and risk assessment, and data and document management. Moreover, the platform offers accounts payable (AP) automation and numerous payment solutions by digitizing payment workflows, screening compliance, and preventing fraud.

          6. Betran

            Bectran is also one of the most trusted credit management solutions since it serves all businesses, regardless of their scales. This tool offers a comprehensive workflow solution to track and report end-to-end credit management activities seamlessly, and they claim to reduce the time it takes to process credit requests by over 90%, making it a great option for all credit departments looking for digital process automation and task management solutions.  

            Bectran also aims to achieve invoice-to-cash conversion goals quicker and more affordably while gaining real-time insights into your collection effort and progress. This enables you to reduce credit defaults proactively, helping you eliminate over half of your existing collections costs to improve your DSO. 

            Moreover, you can seamlessly integrate all your applications, achieve higher-quality credit management decisions and create a shorter credit-to-cash cycle for your company, which is commendable.

            Wrapping Up

            Credit management is a challenging task since it requires thorough payment tracking and reporting while staying compliant with regulations. This is where investing in a reliable credit management tool can be beneficial. With a comprehensive platform, you can effectively track and report payment activities while minimizing credit default risk and fulfilling any other needs specific to your business. 

            However, finding the right credit management tool for your business can be daunting, but it’s doable. Start by identifying your business needs and reading reviews of available options. It’s also helpful to schedule demos and trials to see how they work and consider pricing and support. 

            By taking the time to research and evaluate your options, you can find the credit management tool that best suits your business needs and helps you achieve your financial goals.

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