Closing Deals Faster With Better Credit Tools
The objectives of credit and sales teams can sometimes feel at odds with each other. While sales teams are focused on closing deals fast, credit teams are focused on managing risk and ensuring the business will get paid. This dynamic often causes friction between the two teams.
The good news is that advances in credit decisioning technology can help accelerate the sales process without compromising a company’s risk level or cash flow.
In a recent survey of large and midsize customers, Billtrust’s Credit2B division learned that customers expect a 0.75-1.25% increase in revenue thanks to our online credit application. What is the main catalyst for this increase? By taking the traditional credit application process and moving it online, the solution has proven to help close deals on average 80% faster.
In fact, after analyzing our customer base, we found that our best customers have achieved well over 70% of online application adoption, complete with bank and trade references, and that those submissions are returned in less than one day. Some companies have even achieved completed applications in as little as two hours!
This time savings is significant because the traditional paper application and manual calling process can take anywhere from 7-14 days, slowing deals down in the eyes of sales.
While protecting the company’s credit risk is important, so is bringing on new customers and increasing revenue. With a speedy credit approval cycle, sales and credit teams are both spending less time following up. As a result, the sales cycle is accelerated and businesses benefit from an improved “Days to Close” metric.
Credit teams have traditionally been measured on “Days to Pay” metrics, but we believe the better measure of success is looking at “Days to Pay” in conjunction with “Days to Close” so that A/R teams can effectively demonstrate how expedited credit decisioning helps drive sales and revenue.
Advances in credit decisioning software also mean that sales and credit teams don’t have to be at odds with each other. When evaluating new credit technologies and strategies, stellar results can be achieved when sales is included in the conversations early. Credit2B works diligently with an organization’s sales leaders, sales champions, and marketing experts to ensure early adoption and that you can deliver best-in-class results by getting the most out of their credit decisioning software.
If you are considering a strategy to go to “Less than One” please reach out for a free consultation.
About the author:
Shyarsh Desai is Group President of Credit2B at Billtrust.
He can be reached on LinkedIn.