Net 30 Blog

Helping you succeed in a tough economy: Part II

November 12th, 2008 by Alex Coté

A couple of weeks ago I discussed our annual customer conference and how companies are increasingly addressing the various challenges brought forward by our current global economic crises. Below is a quick recap:

1. Credit policies have more complexity and frequency of changes
2. The range of data sources and products continues to expand
3. “Do more with less” – expense reductions are causing changes to credit operations
4. There is an increasing demand for a view of total risk across the customer enterprise
5. Collections strategy assignment and design are getting more attention
6. Small businesses are under greater scrutiny
7. Customer monitoring is essential

So how can Cortera help?

#1 Review your credit policies and scorecards with one of our experts

We’ve seen credit polices both in terms of the complexity and the number of scorecards in use steadily increasing over the last several months. With the dramatic shifts in risk tolerance and overall industries impacted by the housing industry collapse, now is the time to review your policies and scorecards. We have experts with many years of experience that can help guide your review.

#2 Evaluate and use multiple information sources to save money and increase coverage

Cortera has been a leader in open access to a wide variety of business and consumer information providers for credit decisioning over the last 15 years. Multiple sources are better than one, it’s that simple. We have several documented customer success stories where clients have saved money while at the same time improving their hit rate. With over 20 sources to choose from ranging from global providers to niche industry-specific data now is the time to evaluate additional sources.

#3 “Do More with Less” with more automation and “information waterfalls”

As budgets are put under pressure companies are re-evaluating all aspects of the business looking for cost savings. Cortera customers have already realized solid ROIs though the use of business process automation, but also are increasingly benefiting from the use of what we call “information waterfalls” – through the decisioning process several data bureaus may be accessed to ensure coverage. The first bureau is often a lower cost pull before a more expensive report is accessed. This avoids wasteful bureau pulls when sufficient information is available from a lower cost provider. This same approach can select information based on the size of the credit request, geographic location, industry or small business/consumer. In all cases expensive reports can be avoided by utilizing just the information required for the decision.

#4 Gain a complete view to avoid unintentional exposures

Customers are increasingly looking for a complete view of their entire customer relationships. As companies expand globally, add product lines and acquire new business, managing a single view of the customer becomes more and more challenging. To that end we offer, Cortera LINK and Cortera TREE to identify parent/child relationships, link related corporate entities, help analyze total customer exposure and enable the credit department to allocate credit lines appropriately.

#5 Advance your collection techniques with technology and better information

Cortera offers the eCredit Collections platform to automate collection processes and activities to help you better prioritize and gain efficiencies. Looking to improve your results without software? Cortera recently launched Collections Insights. With Collections Insights you can upload a file of customers and within minutes receive insight on which customers are deteriorating and should be called first.

#6 Watch your small business customers

As consumers struggle with layoffs, less home equity and tighter lending standards pressure will increase on small businesses. Cortera offers access to a wide variety of business fraud, consumer and blended (business and owner) information to help you keep a watchful on eye on this segment of your portfolio.

#7 Monitor your entire customer base for warning signs

With a 41% increase in business bankruptcies over 2007, chances are you had a customer file in 2008. Cortera offers public record monitoring to keep you well informed as well batch portfolio scoring and analysis tools like BOOST to help you spot trends while you can still take preventive actions.

In this, hopefully once in a lifetime, economic climate we’re here to help you not only manage through, but also thrive.

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