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Credit Intelligence

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What you’ll get out of this

  • Smart credit limits that prevent bad debt while maximizing sales opportunities
  • Risk assessment that identifies potential problems before they become losses
  • Payment behavior analysis that improves collection strategies
  • Automated credit decisions that speed up approvals for good customers
Credit Intelligence Dashboard

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How Credit Intelligence Works

Credit Intelligence analyzes customer payment patterns, business behavior, and risk indicators to suggest optimal credit limits and payment terms that maximize sales while minimizing bad debt.
1

Analyze Payment History

AI examines customer payment patterns, timing, and consistency
2

Assess Risk Factors

Identifies business stability indicators and potential red flags
3

Generate Credit Recommendations

Suggests credit limits, payment terms, and risk mitigation strategies
4

Monitor and Adjust

Continuously monitors performance and adjusts recommendations

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Key Features

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Smart Credit Limits

  • New Customer Assessment
  • Established Customer Optimization
  • Risk Management
Conservative approach for unknowns:
  • Business entity analysis (LLC, Corp, etc.)
  • Contact information validation
  • Industry risk assessment
  • Reference checking recommendations
  • Suggested starting limits: $500-1,500

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Payment Behavior Analysis

// Example credit intelligence output
{
  customer: "Big Spender LLC",
  currentLimit: 2500.00,
  suggestedLimit: 3200.00,
  riskScore: 0.15, // Low risk
  confidence: 0.89,
  reasoning: {
    paymentHistory: "100% on-time payments",
    orderFrequency: "Consistent every 14 days",
    paymentMethod: "ACH transfers (reliable)",
    businessGrowth: "Increasing order sizes"
  },
  recommendedTerms: "Net 30",
  earlyWarning: false
}

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Risk Assessment Matrix

Low Risk (Green)

  • Consistent payment history
  • Regular order patterns
  • Reliable payment methods
  • Good communication

Medium Risk (Yellow)

  • Occasional late payments
  • Irregular order patterns
  • Mixed payment methods
  • Delayed responses

High Risk (Red)

  • Frequent late payments
  • Declining order frequency
  • Cash-only payments
  • Poor communication

Critical Risk (Black)

  • Multiple missed payments
  • No recent orders
  • Unresponsive to contact
  • External risk indicators

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Real-World Examples

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Scenario 1: New Business Credit

Situation: New customer “Startup Solutions LLC” requests 5,000credit∗∗AIAnalysis:∗∗Newbusinessentity,nopaymenthistory,high−riskindustry∗∗Recommendation:∗∗Startwith5,000 credit **AI Analysis:** New business entity, no payment history, high-risk industry **Recommendation:** Start with 1,000 limit, Net 15 terms, require deposit Result: Customer accepted terms, paid on time, limit increased to $2,500 after 3 months

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Scenario 2: Established Customer Increase

Situation: “Reliable Corp” requests credit limit increase from 3,000to3,000 to 5,000 AI Analysis: 2-year history, 98% on-time payments, increasing order sizes Recommendation: Approve increase to $4,500, maintain Net 30 terms Result: Customer satisfied, continued growth, no payment issues

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Scenario 3: Risk Management

Situation: “Problem Customer Inc” showing concerning patterns AI Analysis: 3 late payments in 6 months, declining order sizes, delayed responses Recommendation: Reduce limit from 2,000to2,000 to 1,000, require payment on delivery Result: Customer improved payment behavior, avoided potential bad debt

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Implementation Guide

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Setting Up Credit Intelligence

1

Enable Credit Intelligence

Go to Settings → AI Intelligence → Credit Intelligence
2

Configure Risk Tolerance

Set your comfort level with different risk categories
3

Define Credit Policies

Establish base limits, terms, and approval workflows
4

Import Historical Data

Upload existing customer payment history for better analysis
5

Start with New Customers

Begin using AI suggestions for new credit applications

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Credit Decision Workflow

  • Automated Approval
  • Human Review
  • Manual Review
Low-risk customers:
  • AI confidence > 85%
  • Meets all criteria
  • No red flags
  • Automatic approval with suggested terms

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Advanced Features

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Payment Term Optimization

Pro Feature - Advanced payment term optimization requires Pro plan for full access.
  • Customer-specific terms based on payment history
  • Seasonal adjustments for business cycles
  • Volume-based discounts for large orders
  • Early payment incentives for cash flow

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Collection Intelligence

  • Optimal contact timing for payment reminders
  • Communication channel preferences (email, phone, text)
  • Escalation strategies for overdue accounts
  • Payment plan recommendations for struggling customers

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External Risk Monitoring

  • Business credit score integration (where available)
  • Industry risk assessment based on economic indicators
  • Geographic risk factors for location-based businesses
  • Seasonal risk adjustments for cyclical industries

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Privacy and Compliance

Credit data protection - All credit analysis happens with encrypted data and follows financial privacy regulations.
  • Encrypted processing of sensitive financial data
  • No external sharing of credit information
  • Compliance with financial privacy laws
  • Audit trails for all credit decisions
  • Data retention policies for credit information

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ROI and Results

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Typical Improvements

  • 40% reduction in bad debt write-offs
  • 25% faster credit approval process
  • 15% increase in approved credit applications
  • 50% reduction in collection time

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Success Metrics

Bad Debt Reduction

Track write-offs and collection rates over time

Approval Speed

Measure time from application to decision

Customer Satisfaction

Monitor customer feedback on credit process

Sales Impact

Track revenue from credit-enabled sales

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Best Practices

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Credit Policy Development

1

Define Risk Categories

Establish clear criteria for low, medium, and high-risk customers
2

Set Approval Limits

Define who can approve different credit amounts
3

Create Escalation Procedures

Define when to involve management or legal
4

Document Everything

Keep detailed records of all credit decisions and reasoning

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Customer Communication

  • Credit Approvals
  • Credit Denials
  • Limit Changes
  • Explain credit terms clearly
  • Highlight benefits of good payment history
  • Provide payment reminders and due dates
  • Offer payment method options

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Troubleshooting

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Common Issues

Solution: Adjust risk tolerance settings. AI learns from your decisions, so approve some higher-risk applications to help it calibrate.
Solution: Provide clear explanations and appeal processes. Use AI insights to justify decisions with data.
Solution: Review and adjust risk factors. Provide feedback on incorrect assessments to improve AI accuracy.
Solution: Automate low-risk approvals and streamline review process for medium-risk applications.
Credit Intelligence: Extend credit safely while maximizing sales opportunities.