Welcome to our Product Talks series, where Bectran's Platform Services experts discuss challenges in order-to-cash and how to use the platform to boost your operations.
Join us in this episode as Platform Services Chuting Li chats about Bectran’s accounts receivable rating feature. Learn how you can use the platform to evaluate the health of your receivables and create a scoring model for your business.
Do you have a topic you want to hear our take on? Let us know by emailing us at producttalk@bectran.com.
Below are some highlights from the conversation.
Q: What are Bectran’s capabilities when it comes to rating individual accounts by their AR performance?
Bectran really streamlines the whole accounts receivable process. So many companies right now are sitting on a huge amount of data, but they really struggle to manage that effectively. So that's where Bectran comes into play. We aggregate all the data [to] automate how accounts are evaluated, so it will make it easier for users to get a snapshot of how one account or customer is performing. So, with real time insights into creditworthiness, businesses can really make smarter decisions on whether [they] should reach out to the customer and start to say, “Hey, please pay those invoices” or extend more credit to them. So, it's all about better and easier decision-making.
Q: What metrics are used to create AR ratings?
When we talk about AR ratings, there are several key metrics we use in Bectran, and these include things like average days past due and current delinquency, which really help understand a customer’s account health. And we also have credit limit utilization, and also the history of broken promises. It all comes together to give a clearer picture of where each account stands.
Q: How do these scores benefit users?
[These] scores are very game changing for users, and [they] allow you to see how customers are performing at a glance. But also what gets really exciting is when you start to utilize those scores and connect those with your collection strategies and also the action you're going to take moving forward—whether it's sending out collection emails or call tasks based on their AR rating. And also [with] our collections score rating, you can turn those data-driven insights into real action and start to go into the next step in the whole order-to-cash process. So, it's not [just] getting the data, analyzing the data, and stopping there, but we connect the dots for you.
Q: What tips do you have for businesses looking to enhance their accounts receivable process?
One key tip is to always regularly revisit and update your scoring model, other metrics, and the weight you want to give to each metric [to] make sure they're still relevant to your business. Also, leverage the insights from those AR ratings to guide your collections strategy, so you are making sure [that] you connect all these insights to the action you are actually going to take. So, making sure you're not just talking the talk [and] not doing what you need to do.
Also, prioritizing follow-ups with high-risk accounts can really make a difference, so making sure you have the correct strategy for it. And always, it’s about your team. Your team knows which factors or which metrics they use that can manage accounts receivable effectively. So, it's always having the conversation with your team and then having the conversation with Bectran, and together we set up the scoring model that can really make the whole manual process easier and automated.
If you want to see how Bectran’s payment portal can optimize the payment process for your business, schedule a demo today or contact us at info@bectran.com.
