The cash flow reality
Research by Xero found that during 2019, 91% of SMEs were owed money outside their payment terms, on average 18 days late in any month.
This equated to a staggering R249.5 billion nationally and leads to an estimated 1 in 5 business bankruptcies among small to medium companies occurring due to their customers defaulting on their invoices.
Over the years, Inoxico has launched many solutions to assist the credit teams and through multiple engagements – the same key questions need to be answered:
·???????Should we extend credit and what to limit?
·???????When will I get paid? Will we be paid, and will it be on time?
·???????Which of our debtors are a risk?
From a Trade Credit perspective, the consensus is that if clients could receive automated credit limit recommendations as well as access to an integrated monitoring system, the result would be a more profitable trade credit book.
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Unlike the world of consumer data, payment data for businesses is not shared formally, hence the building of predictive scorecards & analytics is not accurate. Most information for businesses is reactive, whether it is CIPC or adverse data.
Inoxico has spent the last few years engaging with their clients and fine-tuning their requirements which we have now developed into our proprietary solution “Trade Shield”.
Leveraging over R600bn of Trade Data submitted to Inoxico across 300?000 businesses, combined with unique technology, we are now able to assist our clients with a solution across the credit lifecycle, from digitalising the onboarding process, accurate credit recommendations, as well as providing a platform which monitors all of your debtors with predictive analytics and a recommendation on each debtor – all in advance of a negative event where it becomes unlikely you would recover any debt owed.
Incorporating “Trade Shield” into your credit management strategy will compliment your current trade credit insurance, self-risk management, or cash flow solutions of factoring and invoice discounting.
To find out more, join Inoxico and Nicky Weimar – Chief Economist at Nedbank for our Trade Shield industry launch on 21 April 2022.