CashCollect allows you to monitor your Accounts Receivables and your client risk exposure, with the Credit Limit feature.
This new feature is available by default for all our clients: you can find it in our new Risk Management client tab and monitor your risk exposure from there.
Why setup a Credit Limit system ?
A Credit Limit is the maximum outstanding amount that you accept from one of your clients. It depends on the total outstanding amount due by this client. It will increase when you send a new invoice to that client (because the total amount due by this client increases), and decrease when your client pays one or several invoices to you.
There are several ways of using that option :
You can setup a common credit limit for all of your clients. That way, you can easily keep an eye on the clients who regularly go above that limit and put you at more risks than others. This setup is common if you have a lot of similar-size clients.
You can setup a personalized credit limit for each one of your client, especially if you have less clients with more weight.
If you rely on credit insurance, you can use the credit limit feature to monitor the clients who would go above the limit authorized by your insurer.
the aim of this enhancement is to help you clearly monitor the risks associated with your invoices and easily recognize the customers most at risk.
How to set a Credit Limit on your client ?
In CashCollect, in the Clients tab:
When clicking on a given client, the Client details side panel opens. There you can find the "Set a credit limit" action. When clicking on it, a pop-up will open to fill-in the credit limit amount and its currency
If this client already has a credit limit set, simply click on the credit limit amount and the same pop-up will open to allow you to edit this amount
You can set a common credit limit to several clients by using the checkboxes on the left of the client name (only in the General tab), select your clients, and then click on the "Set a credit limit" action in the side panel.
How to monitor your clients risk exposure ?
After your limit is set, your Risk Management tab should display your complete client list (including those without credit limit).
This tabs includes the following information:
Client name
Average payment delay (the same information as in the General tab)
Outstanding amount (the total amount due by the client at a given point in time)
Credit limit (set as detailed previously)
Overrun (computed by comparing the outstanding amount and the credit limit, to allow a quick analysis of which clients are above their credit limit, and by how much)
The number of clients above their credit limit is also given next to the Risk Management tab so that you can monitor your exposure in a quick overview:
