Credit Policies

Define, apply, and document credit policies in an audit-proof manner.

The credit policy is the central configuration object for the Scoring & Risk add-on. You can store a wide range of settings in the credit policy to help you make decisions that are as compliant as possible and also automated.

A credit policy is generally assigned to a business unit, so you can define different processes for your different business areas. However, you can also define a credit policy for all business units.

The add-on is currently in the BETA phase. We reserve the right to make changes to the interface and functionality.

We would be happy to implement your individual internal scoring and your credit limit calculation in our product. Please contact us to discuss this. After a short development phase, you can then store the calculator in the credit policy. You can also use different calculators for different credit policies.

You can find the credit policies in the settings under “Scoring & Risk.” You can configure the following settings in the credit policy:

Name: The name of your credit policy. This is especially important for knowing which credit policy a credit limit belongs to. It is used in filters.

Description: You can use this field to explain the credit limit calculation or internal scoring so that your employees are aware of the settings.

Currency: Which currency should the credit policy apply to?

Active: Credit policies can be activated and deactivated. Once they are deactivated, no more automatic decisions are created, and internal scores and risk classes are no longer updated.

Credit limit expiration date adjustable by users: Here you can control whether users are allowed to manually adjust the expiration date of credit limits.

Minimum credit limit: Enter the credit limit that you want to suggest to each customer as the minimum credit limit.

Automatic decision for limit reductions: If activated, limit reductions are carried out automatically by the credit policy and do not need to be validated/approved.

Automatic decision for limit increases: If activated, you can choose to have credit limit increases up to a certain threshold carried out automatically. You can choose between a relative and an absolute increase threshold and set it. Example: €2,000.00 & “Absolute (€)” means that limit increases of up to €2,000 are set automatically by the credit policy, regardless of the otherwise intended processes.

Manual credit policy: Enable this option if you want to set all credit limits manually, without an internal score and credit limit calculation.

Calculated limit: recalculation frequency: Specifies the number of days during which credit limits of the type “Credit policy” are not considered in a recalculation. For customers with fluctuating revenue figures that lead to constantly new proposals, this can reduce the frequency of decisions, so you don’t have to deal with the same customer over and over again.

Manual limit: recalculation frequency: Specifies the number of days during which credit limits of the type “Manual” are not considered in a recalculation. This can be overridden by the user if the option “Expiration date of credit limits adjustable by user” is enabled.

Delete limit after x days of inactivity: Number of days after which the credit policy automatically deletes credit limits of inactive debtors. Inactive means that no new documents have been imported for a debtor for the defined number of days.

The approval policies define the process for credit limit changes. You can add as many limit ranges as you like, so you can define the processes that suit you. For each limit range, you can specify whether validation is required (if not, it is performed automatically), how many approvals are required, and who is authorized to approve the decisions.

In the credit policy, you can also configure how internal scores are allocated to risk classes. You can assign specific score ranges to each risk class so that the internal score and the risk class make sense together. The number and names of the risk classes are specific to your account and can be adjusted by clicking “Credit Policies” in the settings.

Technical Specifications
The credit policy automations for active credit policies currently run once per night.