Accounting Score

Before you extend credit to your customers, you likely complete thorough checks on creditworthiness. Now that time has passed, your existing customers’ abilities to repay debts have probably changed. To address this and help your business adjust, you can employ account scoring as part of your accounts receivable strategy.

What Is Account Scoring?

Have you ever received a credit limit increase without asking for one? This happy news likely occurred due to automated scoring for your account. Bots reviewed your financial details and decided that your creditor could trust you with a potentially higher debt load.

Account or collection scoring predicts the likelihood that a given customer will pay their bill on time. Like your bank, you can use this data to make more informed decisions about how to manage your accounts receivable.

Credit in accounts receivable can be a massive boon to your business. As a result, it’s essential to use all the tools at your disposal to maximize your profits.

What Are Some Benefits of Collection Scoring?

Technology has revolutionized the way businesses operate. In particular, it has had a profound impact on accounts receivable management. By harnessing the power of data, you can make smarter decisions about which customers to pursue payment and how best to do so.

Here are some additional benefits:

You can focus your attention on accounts that are more likely to result in payment rather than wasting time on those that are less likely to do so.
You can better assess the risk of nonpayment before you extend credit based on existing account scores.
You can assess the impact of changes in customer behavior on your business.
You can automate some or all of the account scoring process.
You receive the data you need to focus on improving the customer experience.

What Are Some Best Prices for Scoring Accounts?

You can handle scoring internally on your own or via your team. Depending on the size of your business, this might make sense. However, if you don’t have the bandwidth to dedicate to scoring calculations, you can outsource the task.

An even better solution involves employing technology to get the job done. This allows you to protect customer and corporate data better while ensuring you have immediate access to the most up-to-date data. Consider these best practices:

Use a data-driven platform: This solution will help you manage risk and optimize profits by collecting and analyzing large amounts of customer data.
Consider your needs: What exactly do you need from a scoring solution? Make sure you select a provider that can offer you tailored services.
Compare software pricing: Don’t overspend on a solution when you can get the same quality for less.
Adjust credit offering. By understanding which customers are more likely to default on payments, you can better decide who to extend credit to and how much credit to extend.

Why Choose Gaviti for Managing Your Customer Accounts

Gaviti is a leading provider of accounts receivable software solutions. We provide the tools you need to get the most out of your accounts receivable strategy. Our software has you covered whether you need access to day-to-day metrics, individual customer data, or dunning notice templates.

Customers who use our software to manage credit in accounts receivable have seen a boost in cash flow and a drastic reduction in delinquencies. What can Gaviti help your business achieve? Book your free demo to find out.