When your business is in a phase of growth, everything can start to feel pretty high-stakes. And, well, that’s because they often are: the choices you make during these periods can make or break your business. It’s the difference between staying where you are and skyrocketing your business into new markets, new minds, or the future of your industry.
But just because these choices are important doesn’t mean you should be stressing over every single decision. Before you get so bogged down in choices that you start to think picking the wrong office coffee machine will be the end of your business, take a breath. When you know exactly what you’re looking for, it’s much easier to find it.
When it comes to tools like automated credit decisioning software, the choice doesn’t have to seem so life-and-death. Because when you understand what you’re looking for, you can find the tool that aligns best with your business’ goals. That’s why we’ve put together this checklist for choosing the right credit decisioning software.
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1. Your automated decisioning tool should free up everyone’s time
How much time is your credit team currently spending on manually reviewing credit applications? Our research has found that finance managers can take up to a full 8 hours to reach a credit decision on a single customer. While that’s not always the case, imagine what it means for companies with large portfolios, where credit managers need to work through dozens of applications each week. One of the most important things about automated credit decisioning is that it eliminates many of those manual decisions, allowing credit managers to dive deep into the cases that need more attention.
But a really great automated credit decisioning tool doesn’t just benefit your credit department. In our research study The Sales vs. Credit Control Battle, we found that 54% of surveyed salespeople admit they waste up to 20 hours per week pursuing leads that don’t meet their company’s credit policy. This can lead to frustration on both sides – the sales team feels like they aren’t able to hit their targets, while the credit team feels unheard and underappreciated.
A good credit decisioning tool should be able to be integrated into your company’s CRM. That way, sales teams can quickly check whether a lead is likely to be approved by the finance team based on the company’s credit policy. It means they’re less likely to have the deal rejected and the finance team can be more confident in the deals the sales team brings to the table.
2. No-code automated decisioning tools free up resources
In our research study AI’s Role in Business Risk, 29% of respondents admitted they have little to no digital skills. A mere 14% claimed they had “expert” digital skills. And we get it: technology moves so quickly that it can be difficult to keep up, especially when so much of a work day is swallowed up by manual processes and slow decision-making.
That’s why it’s important to look for an automated credit decisioning tool that offers a no-code solution. Rather than having to rely on a developer or separate team to integrate the tool, this type of software can be installed in just a few minutes. That way, developer teams have more time to spend working on larger projects. Plus, the sales and finance teams can start feeling the benefits of automated decisioning practically instantly.
3. Automated decisioning tools should be based on excellent data
An automated credit decisioning tool can be a complete game-changer for your business. Going from lengthy, manual decisions to a clear yes or no in a matter of seconds can feel like your business is suddenly in the big leagues.
But if your decisioning tool is making decisions based on unclean or out of date data, you might as well be throwing darts at a board to make your credit decisions. You might not know that a business’ Days Beyond Terms (DBT) has spiked dramatically in the last couple of months, for example. If that happens, you could sign a deal with a business likely to pay you back late – or worse, go bankrupt before you get your money.
An automated decisioning tool is only as good as the data that it pulls from. That means making sure that your data is as clean as possible and updated very often. You can also work with automated decisioning tools that pull from an enriched data universe. These tools give you more information than you’d be able to find by just pulling credit reports and using trade references; they give you the full picture of each customer.
4. Protect your business with clear audit trails
Automated decisioning is about more than making choices about which customers to work with. You can also use it as part of your compliance due diligence process.
A good automated decisioning tool will flag compliance violations in businesses you screen. Remember that compliance is your responsibility across your entire supply chain: if one of your customers or suppliers is found in violation, you could be hit with fines, legal fees and reputational damage.
But it’s not just about keeping track of your suppliers: you also need to keep track of your own business. And when it comes time to audit your credit processes, you need to know exactly who accessed what information and when.
Well, guess what? That’s another benefit of a good automated credit decisioning tool. Look for a tool that keeps a detailed audit trail of everyone who uses it, the businesses they look up and the results and decisions they find. That way, when you need the information for auditing, you can access it with just a few clicks.
5. The best automated decisioning tools are fully customizable
It’s all well and good to be able to make decisions based on your current credit policy. But part of the point of implementing automated credit decisioning is to help your business grow and flourish. With bigger portfolios and new business goals can come new credit strategies. And if your automated decisioning tool doesn’t change its parameters along with you, you’re stuck making decisions that don’t always suit those goals.
When you choose an automated credit decisioning tool, make sure you can make changes to your decision parameters easily and as often as you want. The process should be quick and painless – as simple as flipping a switch or typing in a few new numbers. Plus, the best automated decisioning tools will make those changes instantly, meaning you can start working towards your business’ new goals almost as soon as you set them.
Faster onboarding. Smarter decisions. Better risk management.
Try Creditsafe's automated credit decisioning tool today.
About the Author
Mark Laube, Product Director, Creditsafe
Mark Laube has over 8 years of leadership experience and deep expertise in business credit data, financial data integration, and evolving market needs. As Product Director, North America, Mark drives the strategic direction of Creditsafe’s product suite with a focus on innovation and trusted solutions. His role demands a high level of authority in navigating the business credit and risk landscape, and his insights are instrumental in shaping product developments that businesses can trust.
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