Credit management can be done either manually or automatically with the help of specific software. Whether or not to use software for credit management differs from company to company and often depends on its size. For small and medium enterprises that draw up a limited number of invoices on an annual basis or do not have enough debtors, the use of an accounting package or ERP system is sufficient. For many SMEs, specific software for debtor management simply has no added value or its use is still under investigation.
Larger companies, however, are in need of professional software for credit management. The managing of a large number of invoices and manual follow-up is an almost impossible assignment for them. Moreover, the use of an ERP system is not always user-friendly and in some cases offers insufficient possibilities and flexibility for an efficient debtor management.
There are many advantages to using debtor management software. An automatic follow-up is a must in order to keep the overview and to work in a goal-oriented manner. It is also a quick and easy way to track customers and suppliers and to make sure they pay their invoices in time, which is the ultimate goal of debtor management software. Moreover, such software is important for a company’s cash position and for paying suppliers in time, because if the customer’s outstanding balance is above the credit limit, deliveries are often simply not made. Furthermore, more volume can be handled without hiring additional staff. For some companies, debtor management software is a legal requirement. Finally, it ensures a more professional approach towards management, customers and suppliers.