Liquidity management is of paramount importance within airlines in the aftermath of the COVID-19 pandemic. Managing cash flows efficiently is imperative. In today’s competitive air cargo markets, having agile information to take swift action is the key. Cargospot Revenue, our tried and tested cargo revenue accounting system, which is fully integrated with our other solutions, has been updated to meet these new needs and challenges. Its improved built-in credit control module offers an easy and efficient way of managing cash inflows and outflows – balancing the liquidity requirements within an airline.
Cargospot Revenue’s credit management allows the airlines to make conscious credit calls, based on the bank guarantees / bonds or collaterals, to set up credit limits for customers within the system. The limits set in the system - which may be secured or unsecured – trigger alerts to customers on their credit usage. Cargospot Revenue stops bookings once credit limits are reached. However, the system permits executive overrides - to allow the excess credit basis auditable approvals, thus allowing the release of bookings. On recording the receipt of the customers’ payments, the credit limits are automatically re-instated.
This entire process leverages dynamic and manageable workflows to mitigate the credit risk of the airline.
Setting-up credit limits – Airlines can define the limit of exposure to its credit customers i.e. forwarders, shippers, or consignees. This feature also enables the setup of credit tolerance limits and threshold limits.
Maintains trajectory – All payments & credit transactions of each credit customer are recorded and maintained. Consolidated snapshots allow airlines to track their customers dues & payment history, against the credit provided.
Automated early warning alerts – Built-in mechanisms create alerts in the event of account expiry, threshold limits exceeded or credit limits exceeded. This creates customizable workflows that can auto-trigger messages to credit customers/airline officials.
Corrective action - Cargospot has auditable capabilities to stop, hold, cancel, or over-ride shipments when credit limits/credit tolerance limits are exceeded.
Identify secured credit vis-à-vis unsecured credit – The module has been effectively used to define risk parameters of each customer via credit limits, considering their financial viability. It provides visibility between credit limits set for customers against bank guarantees/bonds provided by customers in a single screen.
Report generation – The module can customize reports based on various parameters - such as credit limits set, bank guarantees, payment history and current outstanding balances.