Customer is the focus of any business providing the revenues that enable the business to stay in operation and grow.
Most businesses provide credit to their customers, which introduces another risk factor for the business. If the customer does not pay as agreed the business has provided products or services without compensation but has incurred the associated costs.
Legal entity customers are different from individual customers in both their credit characteristics and collection techniques.
Legal entity customers tend to be much larger customers in terms of sales volume and more demanding in requiring favorable sales terms. They therefore represent a much greater risk to the business should they fail to honor debts and make timely payments.
The credit qualification of prospective customers coupled with the timely identification of problem customers can enable the business to avoid significant losses and manage the customer relationship.
The credit qualification of corporate or legal entity customers is an important function that draws upon internal data and external data from vendors such as Dun & Bradstreet.
The Credit & Collections Legal Entity Customer Business Area Model integrates information from both internal and external sources to provide a comprehensive credit reporting data architecture.
|Credit Rating||Terms & Conditions|
|Supplier Risk||Collection Activities|
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