Applying for trade credit is notoriously slow. From the time a credit application is submitted, it takes on average one week to receive all the information you need to make a credit decision. During this week, the sales team will have asked multiple times if the customer is set up for credit. The credit applicant might also reach out to check its status as they want to avoid having to prepay for their purchases. This puts undue pressure on the credit manager to make a decision as fast as they can, potentially resulting in an ill-advised conclusion.
As a credit provider, you must balance making good judgement calls on extending credit while also allowing for customers a pleasant purchasing experience that gives them the ability to spend money with your company. Larger credit limits lead to more purchases, but it also increases risk.
One of the ways we are helping solve this problem is by significantly reducing the time it takes to gather the information to make a credit decision. Just today, we had a credit provider complete the entire process, beginning with sending out the credit app and then receiving a completed app and returned references, all in about 24 hours. One day instead of a week to compile the data necessary to make a credit decision!
We’re not stopping there, either! Our vision is to allow for instant credit decisions. That may take some time to get there, but it’s important to know where we’re headed.
Want to reduce the time it takes for your team to make a credit decision? Contact us below or email me at clark@fiado.us
