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Copyright © 2019 HighRadius Corporation
Credit Policy in 2019
Mitigating Risks with Macroeconomics, Consumer
Behavior and Technology Disruptions
Uncertainty in the Economy?
Copyright © 2019 HighRadius Corporation
Key Macro-economic Trends in the US
Starting the year with no clarity about potential changing dynamics
INFLATION TRADE DEBT AND DEFICIT SHIFTING A/R METRICS
Commodity price
hikes
Rising interest
rates
Import duties on
goods
Global debt level
at an all time
high
$21 Trillion debt
for the Federal
Government
CEI reduced from
87.4 to 83.5 in 2
years
Dropping CEI
indicates re-
strategizing credit
and collections
Source: CRF’s Annual Focus on the Economy for 2019 Projections from Leading Economists
Copyright © 2019 HighRadius Corporation
What is the Current Landscape?
Source: CRF Survey Report
Copyright © 2019 HighRadius Corporation
2019 Focus Points for Credit Policy Alignment
23%
58%
20%
People Process Technology
People - Org Design and
Training
Process - Collections, Credit
Cards Efficiency
Technology - Cash App,
Collections, Tech
Advancements
2019: Year of Process Efficiency and Effectiveness
Source: CRF Survey Report
Copyright © 2019 HighRadius Corporation
Balancing the See-saw in Building a Credit Policy
Robust vs Nimble
Robust Nimble/Flexible
Copyright © 2019 HighRadius Corporation
Sales Centric vs Risk Averse Credit Policy
Robus
t
Nimble Robust
Nimble
SALES
PROFIT MARGIN
SALES
PROFIT MARGIN
Too conservative Too liberal
Copyright © 2019 HighRadius Corporation
Setting Perfect Credit Policy for 2019
Building defenses against market instability
Incorporate potential
changing dynamics of the
economy in your policy
SALES
PROFIT MARGIN
Framing a Credit Policy
for 2019
Copyright © 2019 HighRadius Corporation
Credit Leaders’ Top Priorities
4 strategic levers to achieve best-in-class performance
Align with Corporate Vision Improve Customer Experience
Improve Executive VisibilitySafeguard Cash Flow
Align credit policy to company’s
Goals & Objectives (G&O)
Get paid on-time and create
more opportunities for upsell
and cross-sell
Monitor performance across
processes
Secure payments in turbulent
macro-economic conditions
Revenue Impact
Net Profit Impact
Copyright © 2019 HighRadius Corporation
Optimizing O2C Cycle for 2019
Securing working capital by incorporating dynamic macro-economic
factors
Customer onboarding
with right credit terms
Reduction in
delinquency
Bad-debt mitigation
Copyright © 2019 HighRadius Corporation
New Year Resolutions for Credit Executives
Build a credit policy that aligns to corporate vision
Implement AI and integrate with A/P portals
Factor the changing dynamics of the economy
Mitigate risk by continuously monitoring customer behavior
Improve top-line strategically by regulating exposure
Provide a single source of truth for all customer data
Monitor process outcomes regularly for corrective action
Incorporate triggers to detect risk
Corporate Alignment
Mastering Technology
Economic & Market Instability
Risk Management
Working with Sales
Information Management
Performance Improvement
Credit Analysis
13
HighRadius at a Glance
375+ Clients. 150 in last 2 years.
#1 in Fortune1000 market.
$1 Trillion in receivables processed
annually.
Integrated Receivables Cloud Platform
Bootstrapped for a decade
2006
Founded
Profitability & Growth
Philosophy
75% CAGR
Growth
Americas HQ - Houston
Europe HQ - London
Asia HQ - Hyderabad
850+ employees
Global Presence
$60+ Million Growth Funding
Strategic Partnerships
2017-2019
z
Credit
Cloud
Cash App
Cloud
Collections
Cloud
Credit Workflow
Payment Gateway
Integration
Deduction Coding
Automated Claim Denial
Packages
Automated
Correspondence
Deductions
Cloud
EIPP
Cloud
Credit Scoring Dispute Management Invoice Matching
Shortage/Price Variance
Analysis
Dispute Management
Credit Bureau Integration Invoice Templates
Email, EDI, Web Data
Capture
Automated Trade
Matching
Notes, Reminders &
Payment Commitments
Online Credit Application Merchant Branded Portal Image Data Capture
Claims, POD Backup
Automation
Collection Strategies
Integrated Receivables Platform
Copyright © 2019 HighRadius Corporation
Questions?

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Credit Policy in 2019

  • 1. Copyright © 2019 HighRadius Corporation Credit Policy in 2019 Mitigating Risks with Macroeconomics, Consumer Behavior and Technology Disruptions
  • 3. Copyright © 2019 HighRadius Corporation Key Macro-economic Trends in the US Starting the year with no clarity about potential changing dynamics INFLATION TRADE DEBT AND DEFICIT SHIFTING A/R METRICS Commodity price hikes Rising interest rates Import duties on goods Global debt level at an all time high $21 Trillion debt for the Federal Government CEI reduced from 87.4 to 83.5 in 2 years Dropping CEI indicates re- strategizing credit and collections Source: CRF’s Annual Focus on the Economy for 2019 Projections from Leading Economists
  • 4. Copyright © 2019 HighRadius Corporation What is the Current Landscape? Source: CRF Survey Report
  • 5. Copyright © 2019 HighRadius Corporation 2019 Focus Points for Credit Policy Alignment 23% 58% 20% People Process Technology People - Org Design and Training Process - Collections, Credit Cards Efficiency Technology - Cash App, Collections, Tech Advancements 2019: Year of Process Efficiency and Effectiveness Source: CRF Survey Report
  • 6. Copyright © 2019 HighRadius Corporation Balancing the See-saw in Building a Credit Policy Robust vs Nimble Robust Nimble/Flexible
  • 7. Copyright © 2019 HighRadius Corporation Sales Centric vs Risk Averse Credit Policy Robus t Nimble Robust Nimble SALES PROFIT MARGIN SALES PROFIT MARGIN Too conservative Too liberal
  • 8. Copyright © 2019 HighRadius Corporation Setting Perfect Credit Policy for 2019 Building defenses against market instability Incorporate potential changing dynamics of the economy in your policy SALES PROFIT MARGIN
  • 9. Framing a Credit Policy for 2019
  • 10. Copyright © 2019 HighRadius Corporation Credit Leaders’ Top Priorities 4 strategic levers to achieve best-in-class performance Align with Corporate Vision Improve Customer Experience Improve Executive VisibilitySafeguard Cash Flow Align credit policy to company’s Goals & Objectives (G&O) Get paid on-time and create more opportunities for upsell and cross-sell Monitor performance across processes Secure payments in turbulent macro-economic conditions Revenue Impact Net Profit Impact
  • 11. Copyright © 2019 HighRadius Corporation Optimizing O2C Cycle for 2019 Securing working capital by incorporating dynamic macro-economic factors Customer onboarding with right credit terms Reduction in delinquency Bad-debt mitigation
  • 12. Copyright © 2019 HighRadius Corporation New Year Resolutions for Credit Executives Build a credit policy that aligns to corporate vision Implement AI and integrate with A/P portals Factor the changing dynamics of the economy Mitigate risk by continuously monitoring customer behavior Improve top-line strategically by regulating exposure Provide a single source of truth for all customer data Monitor process outcomes regularly for corrective action Incorporate triggers to detect risk Corporate Alignment Mastering Technology Economic & Market Instability Risk Management Working with Sales Information Management Performance Improvement Credit Analysis
  • 13. 13 HighRadius at a Glance 375+ Clients. 150 in last 2 years. #1 in Fortune1000 market. $1 Trillion in receivables processed annually. Integrated Receivables Cloud Platform Bootstrapped for a decade 2006 Founded Profitability & Growth Philosophy 75% CAGR Growth Americas HQ - Houston Europe HQ - London Asia HQ - Hyderabad 850+ employees Global Presence $60+ Million Growth Funding Strategic Partnerships 2017-2019
  • 14. z Credit Cloud Cash App Cloud Collections Cloud Credit Workflow Payment Gateway Integration Deduction Coding Automated Claim Denial Packages Automated Correspondence Deductions Cloud EIPP Cloud Credit Scoring Dispute Management Invoice Matching Shortage/Price Variance Analysis Dispute Management Credit Bureau Integration Invoice Templates Email, EDI, Web Data Capture Automated Trade Matching Notes, Reminders & Payment Commitments Online Credit Application Merchant Branded Portal Image Data Capture Claims, POD Backup Automation Collection Strategies Integrated Receivables Platform
  • 15. Copyright © 2019 HighRadius Corporation Questions?

Editor's Notes

  1. Focus on business needs Corporate strategic roles Managing customer risk Embedding, currency risk
  2. HighRadius is headquartered in Houston, TX and we have been offering solutions for A/R and credit for more than a dozen years. We are the only provide of an Integrated Receivables platform that provides end-to-end solutions for the entire order-to-cash cycle. Our expertise and experience are the foundation of our cloud-based product suites for receivables management and automation and have positioned us as the market leader especially in the Fortune 1000 where we are ranked number one among A/R Solution providers. We recently secured a number of investments to help fund our continued growth and expansion. To give you sense of our size, we process upwards of S1 TRILLION in receivables annually for our customers. We have reached 1000+employees globally with offices in the US, UK and India.
  3. Credit Cloud – onboard customers electronically, review and assign limits automatically, credit management workflows and integration with credit data bureaus EIPP Cloud – Self-service portal so your customers are able to view invoices, make payments using credit cards, ACH or e-checks in a PCI compliant form, create a dispute or apply a deduction Cash Application Cloud – aggregates remittance data using web crawlers, OCR capture and EDI formats, marries remittance info to payments, reconciles missing or inaccurate remittance info and auto-closes open invoices from ERP systems Deductions Cloud – One place for analysts to research, manage and resolve deductions. Conducts automated deduction correspondence, and workflows for collaboration, approval and resolution. Automates background documentation gathering from customer portals emails and third-party website, extracting Proof of Delivery, Bills of Lading, and carrier data Collections Cloud – offers dynamically generated, prioritized collections worklists, automated correspondence in a centralized platform to capture notes, call logs and payment tracking