B2b credit management in the new normal

1. B2B Credit Management
in the New Normal

2. • The Need for Fast, Effective Credit Management
• Challenges in Credit Management
• Solutions: AI Powered Digital Credit
• Case Study
• Benefits
• Conclusion
• Questions
Agenda

3. 3
The Need for Fast, Effective Credit Management
• To control Credit Risk and bad debt loss
• To minimize severe AR delinquency & cash flow deficiencies
• To promote revenue in accord with the company’s tolerance
for Credit Risk
• To identify key Vendors who may not survive
• To onboard new customers swiftly to pre-empt competitors
from becoming their primary (or secondary) supplier.

4. Challenges in Credit Management
• Post-stimulus bankruptcy surge
• Increased workload to monitor Credit Risk in a largely Work-
From-Home, paperless environment
• Customer expectation for fast processing and order fulfillment
• To ensure supply of key materials/services is not interrupted
due to unexpected supplier bankruptcy
Credit Management has to be Good and Fast

5. 5
Challenges in Credit Management
Shift to e-commerce:
Sales volume is shifting to e-commerce
• Face to face sales contact has decreased substantially
• Websites are major customer interface
• Online ordering is becoming the channel of choice
• Customers expect fast easy order process
• Slow credit vetting will delay orders & drive customers to other
sources after an unsatisfactory experience
• Order hold decisions & actions need to be taken quickly
Speed and ease required in e-commerce

6. Creating a Competitive Advantage
• Your competitors are trying to secure new customers as well.
How can you beat them?
• A fast, efficient, quality Credit Vetting process will enable you
to on-board a new customer fast. Once you are supplying a
new customer, in many cases you will pre-empt the
competition. Companies seldom onboard multiple suppliers
of the same product simultaneously.
• How fast is fast? Hackett’s World Class performance is a
credit decision in two (2) days
Speed Kills – the Competition

7. 7
Solutions: AI Powered Digital Credit
AI Powered Digital Credit utilizes advanced technology:
• Artificial Intelligence with cognitive & self-learning
• Natural Language Processing – ability to interpret text & voice
• Enterprise Information Processing – integrate with ERP
• Digital Assistants
Digital Assistants:
• Assist your workforce & provide info to Management
• Engage & assist customers 24/7/365
• Perform repetitive tasks
Benefits:
• Fast credit decisions & on-boarding of new customers
• Automation of 70-80% of manual tasks in Credit Vetting
• Better credit decisions

8. 8
Digitization of the Credit Risk Management Process will deliver the
accuracy, efficiency, speed & effectiveness now required
• Customizable Credit Application that customers can complete & submit on-line
• Automatic, real time import of Credit Bureau information and payment history
• Automated, customizable credit scoring
• AI powered credit decisions based on pre-defined rules to assign credit limits
• Full featured Approval Workflow guided by Delegation of Authority policy
• Automated periodic credit limit update process
• Automatic order hold capability integrated with Collections
• Configurable Credit Scorecards to track activity, status of credit applications, backlogs, etc
• Credit Risk Analytics to measure overall credit risk of an AR portfolio
AI Digital Credit Automation Enablers

9. 9
Advantages of AI Powered Digital Credit
Time Saving (both work time & elapsed time):
• Securing complete Credit Application (eliminates back &
forth with customer for missing info)
* customer cannot submit incomplete on-line Credit Application
• Automated Gathering of information
* Digital Assistant obtains bank & trade references, Credit Bureau info, etc.
• Automated Verifying of information
* Digital Assistant verifies business license, sales & use tax, OFAC legal
address, etc.
• Automated scoring with recommended Credit Limit
• Actual Credit decision is usually quick
Labor Saving:
70 – 80% reduction in manual effort in above tasks

10. 10
Case Study - Leading Building Materials Dealer
Client Challenge
The client is a fast-growing supplier of building materials selling to a customer base highly dependent
on vendor financing. While they sought to provide this financing quickly while managing credit risk,
their manual systems could not keep pace with growth. They needed a B2B digital credit solution to
evaluate more customers quickly and increase their revenue.
Customer Value
Deployed Emagia Digital Credit Automation Solution (thecreditapplication.com) with Digital Assistant
• Digital Credit Application with digital signatures, digital trade and bank reference checks
• Integrated with Experian & NetSuite analytical tool; automatic credit limit decisions enabled.
• Automated resale certificate verification process
• Automated > 80% of Credit Vetting process
• Now processing increased volume of credit applications in 4 vs 14 days
• Scalable foundation for digital ecommerce growth

11. Benefits of AI Powered Digital Credit
Fast turnaround of Credit Applications
Increased Productivity
Maximization of Revenue with Controlled Credit Risk
Straight thru Processing of E-commerce orders
Faster onboarding of new
Customers
Improved Customer
Experience/Satisfaction
Controlled
Credit Risk
Greater
Cash Flow
Increased Revenue
& Profit

12. Conclusion
• The Credit Management function is being severely
challenged (higher credit risk, need for speed,
Work-from-Home)
• A fast, effective Credit Risk Management capability
is required
• AI Powered Digitization and Automation are the key
enablers for that enhanced capability

13. If you have any questions or comments
about this session, please let us know in the
chat box or write to us at info@emagia.com
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Topic: Digital World Class Performance of O2C
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Orders
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Cash
Application
Collections
Deductions
Payments
Invoicing