Astute credit managers are trying to determine reasons why customers don't pay: it's not just enough to "dial for dollars;" analytics are needed. By grouping problems in categories, a credit and collections operation will have the ability to examine "root causes" that negatively impact payment. Root causes need to be first defined in the aggregate. By tracking problem causes, the credit manager may find there are other reasons common to their company.

Four typical reasons for non-payment are: no purchase order; quality issue; pricing dispute; financial difficulty. A "Root Cause" report can be created (e.g., by specific geographic region or product), compiled either monthly or quarterly basis. The report would reflect one particular root cause, a list of customers who fit this category, and their delinquent amounts by quarter. It is then available for review and distribution to the region/product/service people who need to know that a major issue exists. The report makes an excellent vehicle for credit and collection professionals who make presentations to sales and senior management.

Some credit departments have taken root cause analysis one step further by using Root Cause Analysis software.  The goal of investing in this type of software is predicated on the belief that problems are best resolved by attempting to find and  correct or eliminate root causes.  It is widely accepted that the alternative which involves merely addressing the immediate and obvious symptoms of a systemic problem is ineffective and inefficient. By focusing efforts on creating corrective measures that address the root cause of problems, it is hoped that the likelihood of that problem recurrence will be minimized. The primary aim of this type of software is to assist the user in identifying and documenting the root cause of a problem in order to create effective corrective actions that will prevent that problem from recurring.