Credit Management (FIN-FSCM-CR)

Using effective credit management, companies can reduce the balance of arrears (Days Sales Outstanding) and prevent the possibility of non-payment for a delivery that has already been made. The prerequisites for a company-wide credit policy are the integration of credit management in all distribution channels, automated real-time decisions, and access to internal and external credit information.

LAZAR offers SAP’s Credit Management solution which enables companies that have a large customer base with the opportunity to monitor the total liability of their customers, using appropriate credit lines. A decisive advantage of this is a centralized and company-wide management of credit lines. This means that different distribution channels use the same data to check creditworthiness and utilization. This eliminates the risk of customers exceeding the credit limit granted to them by using different distribution channels, without this being recognized by the credit department. In the age of Web business, in which business processes take place at "Web" speed, it is very important to be able to classify new customers or check creditworthiness in real time.

LAZAR will build Credit Management interfaces to corresponding external credit information providers so that the user can get an independent assessment of his or her customers from professional service providers in real-time. In addition, the customers can be assessed according to your own internal company valuation rules, whereby companies can take their internal credit guidelines into account.

By utilizing LAZAR services for SAP Credit Management you will be able to build extensive analyses to identify customer groups with a low risk and good response time, and therefore plan targeted sales and marketing campaigns for low-risk customers. In addition, you can use relevant analyses to compare the structure of their customers, with regard to creditworthiness, with that of other companies or with the industry average.

The Credit Management system also has analyses that can be used to monitor the performance of a credit department or individual credit clerks with respect to the effectiveness of credit decisions. This enables companies to establish to what extent the Credit Management Department was able to prevent non-payment through credit decisions in the past, or to what extent strategic specifications could be implemented. Constant monitoring of performance prevents credit departments from rejecting sales orders due to credit decision criteria that are too severe, where the credit risk would actually be acceptable for the company.