Top Ways Automated Online Credit Applications Improve Accuracy

With the rapid changes in technology, manual credit application processes are becoming increasingly nonexistent. Automated online credit applications have eased the credit decisioning process, allowing companies to maintain efficiency while reducing risk with data-driven decisions. 

In this blog post, we will discuss how automated online credit applications can help improve accuracy, customize application qualification criteria, and provide real-time monitoring.

The Problem with Manual Credit Applications

Manual credit applications can be extremely time-consuming and lack transparency. Furthermore, there are no alerts to notify companies when a customer’s profile changes, potentially leading to a decrease in risk assessment bandwidth and an increase in Days Sales Outstanding (DSO). As a result, companies often miss out on revenue opportunities. Here are a few things you may be running into with manual processes:

Lack of Application Decisioning Quality

As the number of customers and accounts rises, it’s easy to overlook important application details. In haste to bring on more business, or from being overwhelmed by other duties, you may be tempted to accept any and all applicants without fully assessing them – a decision that could lead to significant risks. Contextual, data-driven insights are  key to protecting your organization from delinquencies and bad debt.

Lack of Monitoring from Initial Application Onward

Manual credit management processes typically do not provide adequate visibility for proactive credit risk monitoring. Businesses often implement a calendarized process for reviewing credit accounts monthly or quarterly. But without real-time visibility into changes in customer attributes or account status, accounts receivable teams risk missing obvious red flags.  

According to The Credit Research Foundation, the energy and manufacturing industries are among the worst offenders for late payments (30,60,90+days). It’s essential to keep tabs on accounts from the start of the application process all the way through, as having an unsatisfactory balance is never beneficial. 

Loss of revenue opportunities & Increase in Day Sales Outstanding (DSO)

Manually keeping track of all payments for hundreds of clients can be very time-consuming. Some of the worst outcomes include letting those alerts fall through the cracks  and letting outstanding accounts sit. Outstanding accounts can be detrimental to cash flow, increase Day Sales Outstanding, and even prevent your business from having room for financial opportunities. 

Online Credit Applications Improve Accuracy:

Automated online credit applications help reduce the risk associated with manual processes by allowing accurate data to be instantly collected, stored, and analyzed. In addition, automation eliminates the need for manual entry or review of customer profiles, saving time and money while helping maintain high-quality governance standards.

1. Maintain High-Quality Governance

Data-driven decisioning criteria can be used to customize online credit applications and ensure better review and approval processes. By making more informed decisions, automation helps businesses minimize credit risk from the start.

2. Proactive Risk Monitoring 

Real-time monitoring capabilities through automated online credit applications allow companies to monitor customer profiles as they change over time. Companies can then implement strategies to mitigate risk while maintaining high-quality control standards. In addition, automated systems provide an audit trail that helps organizations track changes in customer profiles more easily and accurately than manual processes ever could. 


Automated online credit application systems offer numerous benefits for improved accuracy, reduced risk, and increased revenue opportunities. Credit teams can leverage configurable credit application templates and user-friendly dashboards to improve your credit approvals process.

CreditPoints’ online credit application system can streamline the entire credit journey from start to finish, reducing risks and improving precision from initial applications through ongoing account management. Request a consultation to learn how CreditPoint can help optimize your credit management today.