How B2B Sales are limited by credit. The consumer credit industry has made it easier for people to get credit approval from a lender. A person can apply for a credit card or loan from the convenience of their own home and receive an instant approval based on their credit worthiness, based on their business tradelines history.
Another example How B2b Sales are Limited by Credit is, Due to the inherent disparity in the quality and source of B2B customers’ credit risk data and the absence of a capable and mature technology platform, credit requests take approximately 7 to 21 days. Due to the size of B2B Sales, close to 90% of B2B sales are made on credit terms. An organization not ready to concede credit to businesses might miss out on revenue. This article gives a comprehensive look at how B2B deals are limited by the current state of the Credit processing organizations.
Credit Process Deficiencies
Below are some major deficiencies that are prevalent in the traditional credit process, broken down by the UCP:
These credit processing deficiencies often lead to an increase of delays in b2b credit approvals which also makes the process of setting up new customers for credit delayed, and create other costs and risks for the business. These deficiencies in the credit process slow down the Sales Process, and in some cases, jeopardize
Risk To Businesses and Costs
These shortfalls bring a number of drawbacks as a result of these problems including.
Costs:
- Lost productivity
- Customer Dissatisfaction,
- lost Sales
- Lost productivity
Security
- Lack of encryption
- Security breaches
- Access to secure information by unauthorized
Risk
- Poor Credit decisions
- Financial loss
- Credit risk
As displayed in the outline above, the expenses and dangers related with a customary business to business credit cycle can go from security breaks, client dissatisfaction, and security breaches. Businesses must be able to control their costs and risks in a highly secured transaction processing environment in order to function effectively. Numerous businesses are using technology to solve those issues.