LSQ’s Approach to Managing Customer Credit

Based on 25-plus years experience, LSQ FastTrack® Credit Management helps businesses mitigate risk and make responsible customer credit decisions.

Managing customer credit is critically important to success. Growing your business relies on quality customers and not putting yourself at risk of trying to build a business with customers that are not financially healthy.

While there are companies that provide this type of technology and services that attempt to give insight into customer credit, their focus can be narrow, often focused on larger enterprises. There is a gap for this data for mid-market or small-to-medium businesses. Assessing the credit of a publicly-traded company is an easier prospect than that of, say, a small regional retailer or manufacturer. 

That’s where LSQ FastTrack Credit Management comes into play.

LSQ FastTrack Credit Management is the embedding of credit into technology solutions and leveraging real-time data created by the transactional behavior of suppliers and buyers. LSQ FastTrack Credit Management provides businesses with the tools they need to make responsible customer credit decisions and properly mitigate risk for customers of all sizes – large enterprises all the way down to SMBs.

At LSQ, we provide the credit services that help our clients evaluate the financial strength of their customers to be able to pay for the invoices. LSQ’s credit engine uses 25 years of in-house and third-party data to make instantaneous credit decisions about your customers with our credit-decisioning engine. Based on set credit limits, our clients understand the credit worthiness of current and potential customers to help reduce risks.

LSQ’s credit, data, and account management teams are always keeping an eye out for changes in credit worthiness, suspicious payment behaviors and signs of fraud. Our technology automatically can verify the legitimacy of most invoices, but we also verify invoices manually to reduce errors and confirm the delivery of goods and services when the need arises.

Fundamental components of LSQ FastTrack Credit Management are our:

Credit-decisioning Engine

Our proprietary AI-driven tool generates unlimited, instant credit assessments of new, potential, or existing customers to provide a more accurate assessment of their financial viability and counter-party risk.

Continuous Credit Monitoring

When the financial condition of your customers changes, we keep you informed. We monitor the major credit bureaus and our own payment data to look for changes in behavior that may indicate financial issues with your customers.

Customer Credit Management

LSQ will automatically determine credit limits for your current and prospective customers. Need more credit? You can request credit limit increases directly within LSQ FastTrack.

Supplier Credit Management

We conduct a supplier credit analysis to structure and maximize program adoption for our supply chain finance clients. These solutions can help reduce or eliminate the need for trade credit insurance.

LSQ Credit Management in Action

One of our long-time clients, KloneLab, uses LSQ’s Credit Management as part of their FastTrack experience when taking on new clients.

“If I go to the LSQ FastTrack portal and request a $200,000 credit line, LSQ will come back and say yes or no or we will only give you $50,000 because the numbers out there for that company aren’t that great,” said KloneLab CFO Brian Seppa.

“It really gives us insight into how to assess customer risk without having to hire a credit manager.”

KloneLab is just a single example of customers using the insights gleaned from LSQ’s 25-plus years of invoice and payment data is really putting a tool in the hands of entrepreneurs so that they can focus on the things that they’re good at, and avoid unexpected potholes.

If you’re interested in learning more about mitigating risk as a way to responsibly grow your business, download LSQ’s Guide to Navigating Customer Credit.