Unlocking the value of accounts receivable

In today’s challenging business environment marked by supply chain disruptions, inflation, and economic uncertainties, companies face the need to mitigate the impact on their accounts receivable (AR).

The erosion of the value of credit sales due to inflation and delayed payments poses significant challenges. However, receivables financing presents an opportunity for businesses to unlock the trapped cash in their AR, enhance working capital, and effectively manage customer default risk.

However, traditional accounts receivable financing has its limitations and many companies now are looking for an alternative solution that offers agility, control, and other numerous benefits.

Counting the cost of inflation

Inflation affects businesses in various ways, including higher costs, rising interest rates, changes in customer behavior, increased Days Sales Outstanding (DSO), and reduced value of receivables. The impacts of inflationary pressures can significantly hamper a company’s financial stability and growth prospects. It becomes crucial for businesses to adapt to these challenges and explore solutions that allow them to navigate the inflationary environment effectively.

Agility and control in AR processes

To overcome the challenges posed by inflation, businesses need to improve the agility and control in their AR processes. Manual, paper-based processes are time-consuming and inefficient, leading to slower collections and invoice approval times. By adopting technology-driven solutions like e-invoicing, companies can streamline their AR processes, strengthen customer relationships, and gain a clear view of their overall working capital position.

Unlocking cash with AR financing

Accounts receivable financing, such as Taulia’s Receivables solution, offers a way for companies to access financing in exchange for a portion of their AR. This enables companies to receive cash earlier than the invoice payment due date, helping them free up working capital and achieve key performance metrics. A true sale, off-balance sheet AR finance solution only provides liquidity but also transfers customer default risk to the purchaser of the receivables.

The trouble with traditional AR financing

Traditional bank-led AR financing programs have limitations, including limited availability, resource-intensive implementation, dependency on relationship banks, and a lack of comprehensive working capital visibility. These shortcomings hinder companies from fully leveraging AR financing opportunities and optimizing their working capital management.

Introducing Taulia’s Receivables solution

Taulia Receivables stands apart from traditional AR financing programs by offering a technology-driven, flexible, and comprehensive approach. It provides access to multiple funders through a single technology platform and agreement, allowing companies to choose the most suitable receivables to sell and when to sell them. Taulia’s solution integrates with existing ERP systems, providing real-time visibility, AI-driven insights, and a panoramic view of all working capital levers.

Benefits of Taulia’s AR solution

Taulia’s solution offers multiple features to make your life easier, including accessing multiple financiers through a single agreement, utilizing a user-friendly technology platform, real-time visibility of your entire AR process, and a competitive pricing model for you to make the most out of your recievables.

Taulia’s solution also ensures that your AR financing program does not appear as debt on the balance sheet, offering further advantages for companies seeking financial flexibility and improved credit ratings.

How Taulia Receivables works

Taulia’s Receivables solution simplifies the process of accessing early payment for invoices. Through API-enabled integration, Taulia extracts invoice data, provides cash visibility, and offers the option for businesses to request early payment with a single click. Taulia’s live dashboard and AI-driven scenario planner enable businesses to benchmark against peers, strategize cash release, and make informed decisions.

Your new solution

Taulia Receivables presents a modern and effective way for businesses to unlock the value of their accounts receivable. To find out how can help you enhance their working capital, improve cash flow, and gain greater control over your AR processes with our technology-driven solution, download our whitepaper today.