Predicting Customer late payments was the most critical part of the company's cash forecasting because paid sales invoices fund the company's salaries, taxes, and purchases.
Anna is a controller in a multinational company in the construction industry business in Europe and the US. Her company aims for solid growth, is funded by bank loans, and follows cash strictly, as they can invoice their customers after the service has been rendered, and customers pay their invoices late.
What's the problem with daily cash forecasting?
Local controllers prepare their daily 3-month cash forecast manually by collecting data from Finance ERPs and banks and order books on a spreadsheet. Customers pay their invoices on the due date only in a perfect world. Predicting incoming cash was the most critical part of company's cash forecasting because paid sales invoices only fund salaries, taxes, and purchase invoices. Because it's so difficult, Anna's company had to keep extra cash buffers in a bank account and pay for extra cash limits. Spreadsheets were sent to Anna, who consolidated the Group cash forecast manually. How to predict and optimize Cash with ease?
The cash forecasting took one day for local controllers and one day for Anna. In addition, due to the customer's late payments being impossible to predict using spreadsheets, and a one-week reporting lag, Anna's company had to keep extra cash buffers in a bank account. The group is paying back its loans with strict covenants, so Anna was looking for an effortless cash forecast to get control on daily cash forecast. Solution: Reduce 90% of time wasted on manual work using riskrate. Get better liquidity. Anna started to predict and optimize cash in 30 minutes. riskrate was connected to Anna's Microsoft Dynamics 365 in 10 minutes and banks in 8 minutes. Anna started using riskrate to predict and optimize cash in 30 minutes. Data: Anna's Microsoft Dynamics 365 and banks.
Effortless cash forecast to reduce 90% of controllers' time wasted on manual work, bring savings on financial costs and a smaller cash buffer on a bank account to grow faster with less risk riskrate's daily cash forecast and bank reports are updated automatically in real-time. riskrate's daily cash forecast tells how much money the company will have in the bank account over the selected period. Anna automatically knows how much money they actually have in the bank account, as riskrate automatically understands individual customer late payments using machine learning and a massive database. ROI that puts a smile on CFO's face As a result, Anna now has the best control of daily liquidity, which means a smaller cash buffer in a bank account and savings on financial costs. On a group level, they saved several working days per week and reacted on time, and smart people in Finance are now empowered to focus on what matters. CFO is happy with a quick ROI and 269€ monthly pricing with no integration project.
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