What is credit management software?

Credit management is the policy a company pursues towards its debtors. The aim is to ensure that outstanding invoices are paid. Credit management software digitises this entire process. Pursuing a good debtor policy also means that you can pay your own bills on time. Credit management software is also known as accounts receivable software.

Why credit management software

There are various reasons why you might consider digitising the credit management process. Below we list a number of considerations:

Overview: When your company has a lot of outstanding invoices, it can be hard to keep track. Credit management software ensures you always have a clear view of who has and has not paid.

Saving time: Many accounts receivable tasks can be digitised, which can save a lot of time. Credit management software keeps track of all outstanding invoices and you can set it to send reminders and payment demands automatically.

Reducing costs: Since credit management software digitises many tasks, less manpower is needed to carry them out. Instead of phoning customers, you can spend your attention on other priorities.

Convenience: Credit management software often also makes it possible to enter into a dialogue with the customer via the online invoice. The customer can easily and quickly post a response explaining why they have not paid yet.

Tip: good credit management can improve your company's creditworthiness

A company is creditworthy if it can pay its invoices and actually does so. Good credit management also makes it easier for you to pay your own bills. This earns you more trust from companies and banks. Companies like to do business with customers who pay their bills. Banks are more inclined to offer a lower interest rate to companies that are creditworthy.

Specialised credit management software

A lot of business software has its own credit management tools built in, but these are often not as extensive as a credit management tool that specialises in this.

Credit management software or outsourcing credit management

When an invoice is not paid, a company can choose to engage a debt collection agency. Debt collection agencies are often engaged on a no cure, no pay basis. This means collection agencies have an interest in recovering the collection costs. This can be at the expense of a debtor who was previously a customer.

A lot of accounts receivable software offers an alternative, because it makes it possible to set up a payment arrangement. With a payment arrangement, the collection process can be started and collection costs are charged to the debtor.

Creditmanagement features

This overview explains the features of credit management software.

• Payment reminders and payment demands

When a debtor's payment term has expired, it is important to send a reminder or payment demand. Accounts receivable software detects this and can send a payment reminder automatically. Without costing you time, your accounts receivable stay up to date.

• Payment arrangement with accounts receivable software

Accounts receivable software makes it easy to agree a payment arrangement. You can take the initiative yourself or let the debtor do so. It is often possible to agree a minimum amount per arrangement and you can switch the arrangement on and off whenever you like.

• Debtor file

The software keeps a file on each debtor. This lets you always keep track of everything that has happened with a debtor. This can also be handed over to the bailiff.

• Debtor notes

It is possible to make internal notes for colleagues per invoice. This is especially handy when a company has many debtors or many employees work with accounts receivable software. By using internal notes you always know what is going on with the debtor and you can easily keep track of contact moments.

• Dialogue at invoice level

With this function, debtors can enter into a dialogue online about an invoice. Debtors can easily and quickly post a response to an invoice. They can, for example, state why they have not paid yet and/or when they will pay. In this way the accounts receivable process can be sped up considerably.

• Bad debt invoice

This function ensures that bad debts are automatically offset in the VAT return.

Search, compare and select software

Are you convinced of the added value of credit management software? Are you curious which software suits your business? Or do you want to integrate software to digitise your business further? Then click the "compare accounts receivable software" button below and compare all credit management software.

Would you like help finding a suitable software system? Then start the software selection tool with the “start software selection” button below, select the accounts receivable features relevant to your business and find the software that suits your business.

If you still can't work it out, please contact us or call us, we will gladly help you find the right business software for your business.