Credit Applications End-to-End Automation

Best Practices – Online Credit Applications

Credit Application Software

• 80% faster credit approvals
• 90% less manual work
• 5% more sales from new accounts

Online credit applications are relatively new and even the simplest offer a browser-based application filled out by the customer and then processed by the creditor (but usually completed off-line, manually).  This may work for very small companies, but companies with large numbers of customers need an automated solution. The easiest way to explain it is:

1. The customer fills out the online application, e-signs any included agreements, guaranties, forms, etc., and clicks a button to submit.
2. With 100% automation, the system produces credit documents and uses workflow to assign it to someone else for action or decision.
3. What was a multiple-day, tedious process to set-up new customers and approve new orders can be done in one day

The benefits are straightforward and the ROI is large.

• Speed. Accelerate speed of order approvals, reducing the time up to 80%, in many cases from days to just hours. If you save 5 days in new order processing, you are adding a week’s incremental revenues from new customers (2% per year).
• Costs. Eliminate almost all manual work, and the wasteful cycle of follow-up calls, faxes, emails, hard copy forms, and letters.
• Accuracy. Get more accurate information directly from the source (the customer), eliminate manual entry errors.
• Better Credit Decisions from having complete and timely information.
• Customer Relations. Improve customer service with a “frictionless” process with your branding that eliminates the wait for order approvals..
• Automatic Reviews. Based on your rules, the credit file is updated periodically. Workflow, authorization levels, and automated system updates and follow-ups keep your records up-to-date.
• Credit Risk Control. Keep files up-to-date, with monitoring and system-generated updates. For example, refresh financials annually, or adjust credit lines when payment experience changes.
• Online Credit Files are maintained for all documents, reports, with credit decision justification with backup.
• Compliance, Legal, Signatures. The information you need for legal compliance, including valid digitally signed agreements and documents.
• Online Sales Tax Exemption Certificate File to keep you compliant.

In summary, if you plan to develop or license even the most simplistic electronic credit application, it will be an improvement over hard copy manual forms. However, to achieve the full time and cost-saving potential of this concept, you will need to consider an end-to-end automated application.