Introduction

Getting started with credit management using Bilendo and key concepts.

Product-Specific Section

With Scoring & Risk, in addition to custom credit scoring, you can manage your credit agency information and use workflows to define the approval processes for your credit limit decisions. All of this is handled through the credit policy, which you can fully customize in Bilendo.

For a sustainable assessment of your accounts receivable risk, it is important to set up a reliable internal scoring system. With Bilendo, you can implement your own custom scoring, making decisions as easy as possible for everyone involved in the process.

An internal scoring system is usually made up of various parameters, such as:

• External credit agency information

• Internal payment experience

• External payment experience (pool data)

• Industry information

• Legal form

• And much more

The risk class translates the internal score into an easy-to-understand statement using a color scale. The risk class can be individually named and configured for your account.

Types of Credit Limits

In Bilendo, there are two different types of credit limits:

1. Credit Policy
   A credit limit of the type “Credit Policy” corresponds exactly to the desired credit limit calculation stored in the credit policy.

2. Manual
   A credit limit of the type “Manual” was adjusted through user input and does not correspond to the intended calculation.

The credit policy has different settings for the different types. You may want to fix manually set credit limits for a longer period, while credit limits of the type “Credit Policy” should be adjusted more regularly when the calculation changes.

Credit Limit Approval Process

Credit limit changes are either suggested automatically by the credit policy (every night) if the calculation changes, or they are initiated manually by the user. In Bilendo, a credit limit change generally follows a two-step process:

1. Validation
   The responsible credit managers evaluate the change and either approve or reject it. This step is not tied to a specific user.

2. Release
   A second pair of eyes releases the credit manager’s decision, usually a manager with the appropriate authority. This step is tied to a specific user; only that user can perform the release.

This process can be automated for different limit ranges. With this precise calibration, the workflow in Bilendo can match your compliance processes exactly.

Usage: Step by Step

Validating a single credit limit

• Navigate to “Scoring & Risk” > “Credit Limit Proposals” > “Validation Required”

• Optional: Filter by the credit policy relevant to you

• You can now see all validations that currently need to be processed

• Click “View” to open the limit decision

  

• In this window, you will find a lot of relevant information about the debtor’s risk

• Based on this information, you can make a decision and either validate the proposal, edit it and set a new limit, or reject it

• It is often useful to explain your decision in the comment so that others can understand why you made the decision at that time

• If this decision requires approval, the user will be notified afterward. Note: Until then, the credit limit has not yet been updated

Approving a single credit limit

• Approval works the same way, except that it is assigned to a specific user, and only that user can approve

• To do this, navigate to “Scoring & Risk” > “Credit Limit Proposals” > “Approval Required”

• Click the relevant decision and approve or reject the limit

• As a rule, you will be notified by email when a new decision requires your approval

Validating/Approving Multiple Credit Limits

• You can also perform multiple validations/approvals at once

• To do this, simply select multiple items in the list view and make your decision

• In combination with our filters (e.g., for a very good risk class), this function can speed up your work considerably

Manually Adding a Credit Limit

• If you want to add a credit limit to a debtor that doesn't have one yet, you can do so from the detail view of the corresponding debtor

• To do this, navigate to the debtor

• Click “Options” > “Add Credit Limit” in the upper right

• Your configured compliance-conforming process is then automatically applied, and an approval is initiated if necessary

  

Note(s):

You can configure all relevant settings in the credit policy. In general, the credit policy is assigned to a business unit, so you can define different processes for your different areas of business. However, it is also possible to define a credit policy for all business units.