Knowing when trade cash flows remains uncertain, limiting financial forecasting
Across surveys, well over 50% of CFOs rate their forecasting capabilities as not strong enough, particularly for non-recurring receivables in spite of them being the life line of businesses. This is not just due to late business customer payments but too the lack of communication about the payment execution, itself dependent on dozens of upstream internal and external checks and validations. This limits the financial forecasting required by good governance in managerial accounting but also in statutory accounting exemplified by provisions required by IFRS
Severity & Impact of That Challenge
In managerial accounting, it causes budgeting variances, misallocation of costs, and cash flow mismanagement. A $3m revenue shortfall may lead to $50k in excess inventory costs or $160k in financing costs to address cash flow gaps. In statutory accounting, poor visibility can lead to violations of IFRS standards such as IFRS 15 (revenue recognition), IAS 37 (provisions for losses), and IAS 2 (inventory valuation). Misstatements, such as underestimating bad debts by 5%, could result in $400k unaccounted expenses and $1m write-downs. Ultimately, poor revenue visibility can lead to material financial risks, penalties, and reduced profitability
Limitation of current set-ups
The main reason is imperfect communication Seller-Buyer, and inadequate processes cutting across functions and organizations.. This is compounded by technological gaps, such as the lack of integrated systems to track the progression from contract execution to payment collection in real time. Buyers may also delay payments, citing disputes, cash flow issues, or complex internal approval processes, further obscuring visibility into when cash will be received. External factors (exchange rates or economic instability), can further impact revenue recognition, particularly in cross-border transactions. Finally, poor governance and weak monitoring of contracts, payables & receivables exacerbate.
The Trade Visibility Gap is the difference between the estimated cash flows and the real ones. It is the reverse measure of the accuracy of trade cash flow forecasting and is one of the 11 Trade Cash Gaps which TradinLoop has mapped and is addressing, at scale
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New Solution
New Solution
Based on decades of experience of fixing order to cash processes, TradinLoop founders have designed on online platform that addresses these root causes at scale and provides CFOs with reliable and audit-compatible trade Cash Flow forecasts across all transactions. The platform automates numerous processes and communications, ensuring timely payments and reducing transaction costs. It facilitates seamless integration among sellers, buyers, financiers, and other stakeholders, resulting in improved cash flow management and compliance with laws and regulations. Additionally, TradinLoop provides comprehensive tracing to support financial controls, fiscal responsibilities, anti-money laundering (AML) compliance, and environmental, social, and governance (ESG) auditing and reporting. This holistic approach ensures that all parties have real-time visibility into transaction statuses, performance metrics, and compliance adherence, thereby mitigating risks associated with revenue recognition and cash flow uncertainties.
New Solution
New Solution
Based on decades of experience of fixing order to cash processes, TradinLoop founders have designed on online platform that addresses these root causes at scale and provides CFOs with reliable and audit-compatible trade Cash Flow forecasts across all transactions. The platform automates numerous processes and communications, ensuring timely payments and reducing transaction costs. It facilitates seamless integration among sellers, buyers, financiers, and other stakeholders, resulting in improved cash flow management and compliance with laws and regulations. Additionally, TradinLoop provides comprehensive tracing to support financial controls, fiscal responsibilities, anti-money laundering (AML) compliance, and environmental, social, and governance (ESG) auditing and reporting. This holistic approach ensures that all parties have real-time visibility into transaction statuses, performance metrics, and compliance adherence, thereby mitigating risks associated with revenue recognition and cash flow uncertainties.
From Chief Financial Officer to Chief Future Officer
TradinLoop empowers CFOs with real-time revenue visibility, streamlined cash flow management, automated compliance, and enhanced financial control, reducing risks and improving operational efficiency. TradinLoop is the commercial transaction partner of CFOs
Use Case
Use Case
The CFO of an Agri-food exporter facing challenges in annual or quarterly reporting due to delayed revenue recognition and cash flow uncertainties, decides to adopt TradinLoop. The platform provides real-time visibility into revenue progression from contract to cash, automating transaction tracking and payment reconciliation. With seamless integration of financial data and compliance monitoring, the CFO ensures timely, accurate reporting aligned with IFRS standards. By reducing errors, minimizing disputes, and improving cash predictability, TradinLoop empowers the CFO to meet reporting deadlines with confidence, enhance stakeholder trust, and maintain regulatory compliance, all while optimizing operational efficiency and financial governance.
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