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Nuclear fusion: two atoms collide, fuse together, and release a tremendous amount of energy. A fascinating process — and surprisingly relevant to credit management.
Because credit management also makes real impact where invoice and payment (should) meet. That’s where the energy is created. And just like with nuclear fusion, it’s a powerful starting point — as long as you keep it under control.
The power of accounts receivable
Credit management really begins where invoices and payments come together: at payment processing, or accounts receivable. This is where you see what’s working — and what’s not, such as chargebacks, late payments or unusual patterns. It’s the source of insights and the trigger for action.
Yet in practice, payment processing is often disconnected from credit management. Why is that?
Accounting is not credit management
First of all: many organisations base their credit management on the accounting system. That’s where the data originates, after all. But most accounting packages offer little in the way of functionality for truly customer-focused credit management. They’re designed to record and report, not to flag, analyse or act. These are bookkeeping tools, not credit management solutions — and it shows.
Payment processing is complex — so often left out
Secondly: payment processing is rarely part of credit management software. Most systems rely on a simplified model: starting from open items, without the rich context of payments, chargebacks, and (deviant) payment behaviour. And yet that is exactly where the insights lie that enable proactive and customer-friendly management. So why is it missing? Because building a robust payment processing module is complex. Think: automatic matching, exception handling, and correctly passing updates to the financial system. Many providers avoid the challenge — or only offer a partial solution.
Credit management lacks access to crucial payment data
Then there’s the organisational issue: payment processing traditionally sits with the finance department. Makes sense — those who do the accounting also process the payments. But from a credit management perspective, this is a missed opportunity. The credit management team, in particular, benefits from access to that data — and from being able to act on it directly. In reality, this leads to fragmentation: finance and credit management operate in separate systems, with different insights and priorities. Understandable — but far from efficient.
It’s like the coach staying in the dressing room while the match has already kicked off — or a mechanic trying to figure out why a car won’t start while still in the canteen.
Back to the core
Once you do integrate payment processing (accounts receivable) into your credit management solution, everything changes. You get direct access to source data and can:
- Smartly classify by behaviour, invoices and payments
- Send more targeted reminders, flag earlier, and learn faster
- Automate actions based on real-time information
You turn payment processing into a sub-administration within credit management — no deep accounting knowledge required. And finance? They can continue doing what they do best: bookkeeping at an aggregated level.
Conclusion
Nuclear fusion may still be a thing of the future. But integrating accounts receivable into your credit management system? That’s something you can achieve today. And the energy it unleashes? Instant.
