Master data management

A major challenge for factoring businesses emerges from the management of the debitor master data. The quality of the master data that is supplied by the factoring customer generally varies. This typically results in the following demands in day-to-day business:

• The master data sets for the debitors are incomplete, for example the correct legal form of the company or the house number are missing
• The spelling of the names of companies or private individuals does not always match the spelling from reference data (e.g. information agency data or public register data)
• The identification of new debitors and determining whether they really exist is not possible without further measures
• The recognition of duplicates in the master data supplied by different factoring customers is not easily possible

The identification of the debitors is a necessary step before purchasing claims in order to avoid fraud or simply to avoid "doubled" limits for the same debitor. Furthermore, identification forms the basis for creditworthiness checks because relevant information and possibly trade credit insurance can only be obtained for debitors that can be clearly identified.

The solution

CAM Financial Services supports you with intelligent and automated processes for cleaning up and consolidating the master data and also improves the data by adding additional external information.

How does it work? Please check our success factors.

Risk- and Limit management

The establishment of effective risk and limit management is essential for factoring service providers. To minimize the risk of default on claims in a purchased portfolio the creditworthiness of the debitors must be ascertained before the purchase and continually monitored in day-to-day business. The following challenges in business operations result from this:

• Fast determination of the creditworthiness of debitors and factoring customers
• Prompt detection of payment difficulties on the part of the debitor
• Efficient integration of all the relevant stakeholders in order to carry out increases in the overall limit quickly
• Operative processing of the CCI contracts and the resulting considerable workload (e.g. through fulfilment of obligations)

The solution

CAM Financial Services supports you in risk and limit management for debitors and in the allocation to your factoring customers with automatic credit assessment and limit control processes. CAM Financial Services has a large number of standard interfaces to international credit agencies and trade credit insurers for this purpose. CAM can also manage and operate the trade credit insurance of factoring customers - a clear benefit in your daily work. All this is tailored to your specific requirements in individual workflows.

How does this work? Please check our success factors.

Dunning procedures and debt collection

Even with the best checking of risks, it might happen that a factoring business buys "bad" receivables. This is all part of the business and must be countered by implementing an effective dunning and debt collection system. The following challenges result from this for the factoring company:

• Identification and performance of suitable measures for each debitor
• Assignment of undisputed claims to a debt collection agency
• Taking into account country-specific requirements
• Evaluation of the dunning and debt collection measures carried out
• High manual input and high costs for operative handling, which increase with the number of debitors

The solution

CAM Financial Services supports you with dunning and debt collection processes. The system automatically selects the most suitable measure for each debitor on the basis of the available information and then records the performance of the measure by noting the progress of the process and storing documents. Payment reminders are generated automatically and are personalized. In addition, standard interfaces to leading debt collection agencies set up automatic handing over of cases.

Learn more about our solutions for dunning procedures and debt collection from our success factors.