Late Payment Prediction
Why use Late Payment Prediction
Cash, the lifeblood of all business. Specifically, in the B2B environment, poor management of AR can lead to serious cash flow problems. Extending days sales outstanding (DSO)—or in other words, the average number of days that receivables remain outstanding before they are collected—can send a company into the cash trap. It is not easy to get a business back on track as you might be financing your customers while you need to borrow money to pay suppliers at the same time.
AI is enabling businesses to identify invoices that are very likely to be paid late so that AR collectors have greater visibility of future overdue invoices and they can focus on the customers with the largest overdue amounts. Therefore, AR collectors, with the support of an AI module, can lower DSO and provide much greater future cash flow visibility.
Did you know that reducing days sales outstanding (DSO) by about five days can reduce trapped cash by 30%? In the language of simplified numbers, if your annual revenue is €10M, reducing DSO by about five days can free up almost €300k in annual cash flow.
iERP Solution and Use Cases
iERP is a simple-to-use late payment prediction platform for business users. It uses a continuously self-learning AI-based engine with automatic evaluation of newly created invoices and continuous evaluation of existing invoices without the need for any knowledge of AI or data science. It is a highly accurate AI-based solution with 95% precision in late payment prediction. This provides users with an immediate and actionable overview of invoices predicted to be paid late, so AR collectors can take appropriate action. Late payment prediction results can be reviewed in easy-to-understand charts in the application. Alternatively, data can be exported in Excel files or reviewed directly in an ERP/CRM system with API functionality.
- Reviewing late payment prediction immediately at the moment of invoice creation and evaluating late payment risk as high, medium or low.
- Mass invoice late payment probability update upon regular retraining of the model.
- Business intelligence through various dashboards listing invoices to be paid, with the highest probability of being paid late, the most frequent late payers and classification of customer groups based on late payment prediction.
- Export of the data to Excel spreadsheets.
- Review late payment predictions in your ERP or CRM systems with the built-in API engine.
Benefits of Late payment prediction
- Save money on interest rates charged on borrowed money by reducing the number of days sales outstanding (DSO).
- Improve your cash flow: reduce trapped cash by decreasing days sales outstanding (DSO).
- Identify invoices with late payment probability at the moment of creation so users can assign specific payment terms to such an invoice in order to prevent late payment.
- Identify and sort existing invoices with the highest probability of being paid late and take an appropriate action.
iERP’s mission is to provide an end-to-end business prediction platform with modules that address multiple business scenarios and ZERO required knowledge of artificial intelligence or machine learning technologies.
We are helping companies to predict sales and inventory demands, what their customers are going to purchase next, or identify customers that are going to be late with the payment.