Using credit management and cash collection software is essential for improving your company's cash flow and achieving high performance in receivables management, dispute management and credit risk management. A collaborative and interconnected solution also becomes particularly relevant during a period of accelerated digitization of businesses.

This type of solution is employed to organize and streamline the work of cash collectors and credit managers while professionalizing their actions through relevant business features and minimizing the time spent on non-value-added administrative tasks. It facilitates communication between customers' accounts payable and various departments within the company for dispute resolution. Thus, every stakeholder in the commercial relationship can focus on tasks with high added value:
  • Accelerating receivables collection and cash inflow.
  • Negotiating with high-stakes clients in collaboration with sales teams.
  • Promptly resolving any disputes and thereby increasing customer satisfaction.
  • Facilitating interdepartmental communication with up-to-date data.
  • Engaging company employees (sales manager, customers care ...) in cash collection and dispute resolution,
  • Measure performance in real-time (DSO, % of overdue, dispute resolution time, etc.) across various scopes (all AR, per client, client group, or invoice group).
  • Anticipate the risk of non-payments through optimal monitoring of customer solvency and credit limits.
  • Enhancing the credibility and image of your company among your customers.
The benefits are substantial when the software is of high quality and effectively utilized within a coherent organization. They encompass critical aspects for any business: cash flow (improved collection), profitability (reducing outstanding payments), customer satisfaction (faster dispute resolution).

Digitizing client relationships through web technologies and softwares also fosters communication, sometimes challenging, between financial and sales departments, and with other service providers (credit insurers, financial information suppliers, etc.). The software provides each stakeholder in the commercial relationship, whether internal or external, with access to the necessary information: invoice PDFs, account statements, status, and details of one or more invoices, etc.

What are the existing solutions on the market?

There are numerous credit management and receivables software available today. Most of these software solutions utilize web technologies with a service-based business model.

The application and database are hosted on the provider's servers (local hosting is possible with some vendors). The tool is fed with data from the user company's information systems through secure interfaces (SSL, SSH, SSO, etc.).

Users access the tool through a web browser (Edge, Firefox, Chrome, etc.).

This SaaS model (Software as a Service) avoids the inconveniences of installed software (installations required on each user's computer, license fees, etc.) and facilitates exchanges with other service providers (credit insurers, financial information companies, etc.). Software enhancements are implemented seamlessly for the user.

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    My DSO Manager, The Best-in-class intuitive and quick-to-implement credit management software

    My DSO Manager represents a revolution in the deployment and utilization of a recovery and credit management software.

    The software's data import module, along with its array of automated solutions for importing client and accounting data, empowers users to get up and running in record time. With The Smart Upload capabilities accessible via SFTP, API, and connectors like Quickbooks and Salesforce, users can swiftly integrate the software with any ERP system, whether it's SAP, Oracle, or others.

    The innovative, intuitive, and seamless features (interactive emails, automatic reminders, cash forecasts...) bring unparalleled possibilities to improve cash collection and credit risk management.
    Our pricing approach enables businesses of all sizes to utilize the solution. Our clients range from medium-sized enterprises to large international corporations. More than 1 700 companies use My DSO Manager accross the world in 85 countries

    Our multi-entity/multi-currency/multi-language platforms allow for managing multiple legal entities within the same group with just a few clicks, seamlessly transitioning between real-time consolidated views and the details of a simple invoice. Explore our online demo.

Key features of Credit Management software

These tools offer enticing features that significantly enhance the efficiency of credit Management and cash collection including (not-exhaustive list):

  • Credit risk management :
    • Automatic integration of financial information about customers in the tool.
    • Setting of "scoring" customized according to multiple criteria (financial, payment behavior ... etc.).
    • Definition of rules to automatically assign a credit limit.
    • Internal validation workflow of credit limits and payment terms granted to customers.
    • Credit insurance management, configuration of alerts in case of impending foreclosure.
    • Risk agenda to manage the actions to be carried out on a daily basis.
  • Trade receivable collection :
    • Setting the collections scenarios based on customers segmentations (risky customers, key accounts, small accounts, etc.).
    • Collection agenda with automatically and intelligently generated follow-up actions.
    • Automation of certain customer follow-ups.
    • Customer portal to streamline communication with clients.
    • Interactive internal reminder facilitating communication with colleagues regarding disputes and deductions.
    • internal disputes management workflow to isolate receivables disputed in order to accelerate the resolution,
    • automatical calculation of late payment penalties which are included in dunning letters and statements of accounts.
    • Added payment buttons in reminder emails allowing customers to pay by transfer, credit card, etc.
  • Reporting :
    • Real-time calculation of headline indicators of Credit Management and collection (DSO, overdue ratio, bad debts ratio, payment profiles, etc.).
    • Aging balance available for all receivable or at customer level or customers groups level.
    • Historical data and archiving allowing to observe a customer's payment behavior over a given period.
    • Cash forecast based on promises to pay and customers' payment behavior.
    • Performance on dispute management with resolution time by type of dispute, actor, activity, etc.
    • Cash forecast based on payment experience and payment promises.
    • Risk reports for optimal management of credit risk, guarantees and credit limits.
    • Consolidation of real-time data and indicators at the corporate level for multi-entity, multi-ERP, multi-currency and multi-language groups.
    • Strengthening risk management at the group level for multi-entity clients.
Historically, these software solutions were primarily reserved for large enterprises due to their cost and relatively complex implementation process. However, they are not comparable to the implementation of an ERP system. Today, the trend is clearly moving towards lower costs and simplified implementation. This trend makes this type of software accessible to businesses of all sizes.
New players have developed solutions using flexible technologies that enable extremely rapid implementation with minimal financial and human resources.

Criteria for choosing the software: performance and relevance

  • Offered features: recovery, dispute management, customer risk management, reporting, interconnection with other systems. It is important to ensure that the software meets your needs. Avoid those who do not make easily customization of dunning documents when sending. Cash collection is a qualitative profession, not purely robotic.

  • Ease of implementation and setup: this is the software that has to fit your internal systems (accounting and CRM) and not the other way around. The flexibility of the data import module is indicative of the solution's quality.

  • Technical performance and availability of the tool for users: Another qualitative criterion: 24/7. The platform must remain permanently accessible for the highest performance. Others have restricted hours, sometimes with less than 12 hours available per day, which are equivalent to working hours. These softwares are inert during the day, and with long batches at night to calculate reports and carry out actions. Certain very well-known solutions are still in this archaism. This is the opposite of performance and against the possibilities of digitalization which promote performance and real time.

  • User-friendliness and ease of adoption: The ergonomics and intuitiveness of the proposed functions are paramount. What's the point of a powerful software that is only used 5% of its capabilities due to its complexity? Always consider the users and take a step back from the flashy demos of salespeople.

  • Prices: Make sure you interpret the price correctly. High price is not synonymous with high quality in this sector, quite the contrary. It can be synonymous with an obsolete solution requiring large teams to run it.

  • Safety and confidentiality data: softwares in SaaS mode host sensitive data, in particular customer and accounting data. In an ever more aggressive cyber environment, it is imperative to ensure that security is maintained. and confidentiality of your company's data is guaranteed. If you accept that some of your data is used by the service provider to produce big data, don't forget to promote it. The commercial pitch which consists of; saying: share your data with us so that you can benefit from our indicators is an approach for the almost exclusive benefit of the publisher.

Pitfalls to avoid

  • Watch out for complex systems! If the vendor requires extremely standardized data files in their format, look for another solution. If these files must be sent to their server at defined times to be processed... move on. The time is for modern and flexible solutions.

  • Do Don't be blinded by features that serve no purpose. Evaluate those that will actually be used by your colleagues or employees: In order to stand out in increasingly competitive bids, some vendors have engaged in a race to add unnecessary functionality. This results in complex and unintuitive software, paradoxically containing weaknesses in key features.

  • If you think it's better just because it's more expensive, you're mistaken. Price and quality are not linked in this industry. It's because a software is better thought out, more flexible, and more efficient that it can be cheaper.

  • Prefer a solution that you can configure yourself (follow-up scenarios, email templates, etc.) without having to call on the editor : Simple configuration that can be done independently will allow you to make adaptations more quickly and without additional costs.

  • Beware of robotic solutions! credit management and cash collection are at the heart of the business relationship, and must be managed in a very qualitative way. This does not improve performance at all. Some solutions only allow the sending of standard reminder documents, which are difficult to configure and unsuitable upon personalizing. Some add a AI layer to hide this poor quality. This does not improve performance, quite the opposite.

  • AI as a mask for obsolete solutions. In order to seduce, some publishers dress up their obsolete solution with a layer of Artificial Intelligence. The objective is to use credulity of decision-makers by calling on everyone's imagination around AI. Adding to the robotism of the software, AI increases in this case, automation. However, it further reduces the quality of the work carried out in a profession where flexibility and ability to adaptation are essential. AI is only relevant when it facilitates analysis while maintaining high flexibility for the user. A good benchmark is to ask yourself this question: does this AI module augment the human or reduce it? In the second case, its advantages are an illusion.
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Last comments
A.S. 12-08-2021
A very 1950 approach and understanding of how Credit and A/R Management can best contribute to both short and long term profitability.
M.K.S. 09-02-2019
I am the Internal Audit Manager, it seems the Credit Management and Debt Collection software is ideal for our company, I would like to give a demo to our Credit Control Manager, please help me how I can proceed, your expertise will help me to give a good demo.
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