Late payments are more than a nuisance; they damage financials and trust
All businesses routinely face late business customer payments. all executives know it: Sales are uneased by it, CEOs upset by it but no one more than the CFO of the B2B Seller is accountable for addressing this challenge which shows up in the financial dashboards in terms of Days Sales Outstanding and Cash Flow statements with the ultimate accounting hurdle of having to place provisions for aged invoices, damaging the financial standing, impacting debt levels and ultimately limiting the leverage and growth potential !
Severity & Impact of That Challenge
Over 50% of Business Payments are beyond due date and these cost $40bn according to the WorldBank.
The severity varies by geography, industry and customer but also by stakeholder involved in specific transactions. Such delays are not visible in credit reports and most often not even in ERPs which have imperfect metrics and data gaps.
The impact is major in terms of treasury management and cash flow forecasting, impairing the financial management of most firms and resulting in addition costs from taking up debt as compensation to incurring expensive collection services from credit insurers to debt collectors and lawyers
Limitation of current set-ups
If late business customer payments are as old as trade itself, why is it that modern management techniques, modern information systems and accounts receivable departments are still not able to fix it? Because they only address the surface of late payments and not the 250 underlying issues in processes, IT systems, skills, governance and ethics which are not fully addressed because of one simple fact: business buyers can get away with it at no cost or shame; are we doomed to accept that fate for ever? We do not think so: read on
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Late Payments are one of the 11 Trade Cash Gaps which TradinLoop has mapped and is addressing, at scale.
A Trade Cash Gap is defined as the difference between an expected cash flow associated with trading with customers or suppliers and the actual one.
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New Solution
New Solution
Based on decades of experience of fixing order to cash and procure to pay processes, TradinLoop founders have designed on online platform that addresses these root causes at scale
New Solution
New Solution
Based on decades of experience of fixing order to cash and procure to pay processes, TradinLoop founders have designed on online platform that addresses these root causes at scale
Benefits to CFOs
The result is maximum effectiveness and efficiency resulting in cutting the net cash conversion cycle time by more than 50% while getting proper visibility on expected payment dates, at low cost, at scale, in loops hence the name: TradinLoop
Use Cases
Take this service provider who used to be stuck in the mountain of bureaucratic processes and complicated bonds for public sector client: by using TradinLoop, they were able to fix the dozen of issues (from proper approval of deliverables and invoices to timely bond reclaims) and recover 100% of dues in half the time taken in the past. All of it without damaging client relationships while saving the valuable time of its professional service delivery staff.
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