Successfully chasing debt is often an art form, but issuing credit to customers can be a science. That’s why we’re thrilled to announce the release of ‘Thresholds’ to help you contain your exposure to cash flow issues by setting and tracking credit limits for customers in Chaser!
Fantastic credit control begins with the discipline of monitoring the credit that you offer to customers, so that you can naturally limit your liability if debt can’t be collected. Thresholds make it simple to stay on top of assigning credit limits, and ensure you’re notified when a customer is nearing, or exceeded the amount of credit that you wish to offer.
Chaser is your command centre for credit control communications, and connects seamlessly with your accounting system, making it the optimal choice to track how you issue credit. Thresholds introduces the ability to set limits on the total amount of debt outstanding for a customer, and trigger notifications when a customer has hit, or is nearing the preset limit. Helping you easily track your exposure to customers, and ensure the correct parties are notified if a customer has been offered too much credit.
‘Thresholds’ are set on the customer page, accessible by clicking on the relevant customer’s name on the ‘Customers’ or ‘Invoices’ tab. Meaning you will always be aware of a customer’s Threshold when it comes to making calls, or chasing decisions. You can choose to edit a customer’s threshold by clicking ‘Edit’ to the left of the ‘Threshold’.
You can also choose to set a default Threshold for your organisation, so that all new customers are assigned the same Threshold. Making it easier than ever to keep on top of new customers coming through the door.
Cure & Prevention
While automating your chasing can be the cure to unhealthy cash flow, preventative measures are key to keeping your credit control function in good shape. Setting and monitoring the credit you issue to customers is imperative in reducing the risk of poorly debtors.
Consistently setting credit limits has historically been difficult to maintain, as it requires immense discipline to remember to set and monitor the limits for new customers. Tracking these in an external program or spreadsheet adds even more strain to the process, and soaks up valuable time. Unfortunately, this often results in credit limits being placed in the ‘too hard’ basket when it comes to your credit control process. This a dangerous precedent, as often the benefits of credit limits can’t be seen until it’s too late, when your biggest customer goes bust!
Thresholds within Chaser makes setting credit limits a seamless extension of your current function, and removes the need to use yet another spreadsheet or program to track limits. Thresholds allows you track credit limits on the customers page, providing easy access through Chaser and providing meaningful context. This proves incredibly useful when making credit control calls, allowing you to use the imposed limits to leverage customers into paying.
Thresholds can be automatically applied to new customers using the ‘default’ setting, completely removing friction from assigning credit limits. New customers are flagged in ChaseFeed, meaning you can easily make it part of your process to review the Thresholds of new accounts.
When it comes to preventing bad debt, setting credit limits is only half the battle. To reap the benefits of your preparation, it’s necessary to remain acutely aware of when a customer has hit their assigned limit so that appropriate action can be taken.
Remaining conscious of when a credit limit has been hit or is being approached is often the most difficult step in harnessing credit limits. More often than not, we realise too late that a credit limit has been exceeded, reducing the effectiveness of any decision made to address the issue. Emma from FC Laser, one of our trusted beta testers, struggled to track credit limits without a system closely tied to her accounts.
“I was so thrilled to see thresholds I did a whoop and a little dance in the office!”
- Emma (FC Laser)
After Emma was introduced to Chaser, she started to use Thresholds to manage her credit limits. Using the flexible email notifications she's able to stay ahead of the curve while minimising the cognitive load of checking limits.
We’re really excited to see how Thresholds changes the way you issue credit to your customers, and insulates your function against the risk of bad debt.
We will continue to improve Thresholds in the coming months. Please do reach out at email@example.com if you have any feedback, we’d love to hear from you!