Innovation Software survey on the use of credit reports by law firms
Innovation Software has conducted a survey on the use of credit reports by law firms within the engagement acceptance in the client inception process, and on-going account monitoring.
Russell Lyons, CEO of Innovation Software said:-
“We wanted to evaluate the extent to which the risk and exposure limit recommendations made by various credit rating agencies were deemed useful, as well as understand how they might affect the behaviour and financial management strategy within firms.
The results are interesting. Whilst most firms use a credit rating agency, the primary use is for anti-money laundering and conflict of interest checking.
There is a clear correlation however, between those firms that utilise an on-going monitoring service, receiving update notifications about clients, better collections and working capital performance, and reduced bad debt write-offs.
The results were encouraging, indicating that there is both tangible, as well as intangible value in such services where used to their full capability. In particular, we noticed a higher level of use of estimates for matters coupled with more structure in the identification of costs of the resources and work required. This is attributable as much risks being highlighted by “missing information” in the reports, as recommended exposure limits.”
Innovation Software’s I4G 360 protection module provides automated integration with credit rating agency reports and updates with a variety of collections and PMS systems, including Innovation Software’s own I4G CreditForce 360˚. The Innovation Software product range is available for Aderant, Elite 3E, Elite Enterprise, Galaxy, Lexis Nexis Artiion, Axxia, and DNA, Miles 33, SOS, and SAP TCS LMS.