CM magazine Nov2021

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PAYMENT TRENDS AUTHOR – Rob Howard In Ireland, there have been a plethora of late payment fluctuations. Last month we rightly highlighted the International Bodies, IT and Comms and Other Service sectors for their impressive overall DBT of zero days. However, all three moved in the wrong direction following hefty increases of 4.3 days, 23.7 days and 34 days respectively. CONNACHT -2.6 DBT ULSTER 0.9 DBT Getting Better Water & Waste -34 Energy Supply -26 Construction -20.2 Transportation and Storage -19 Mining and Quarrying -18.3 Financial and Insurance -17.8 Health & Social -14.6 Business Admin & Support -14.4 Education -12.3 Wholesale and retail trade -4.4 Hospitality -0.9 Professional and Scientific -0.3 MUNSTER 1.4 DBT LEINSTER 3 DBT Top Four Prompter Payers – Ireland / N Ireland Region September 21 Change from Aug 21 Connacht 3.7 -2.6 Bottom Four Poorest Payers - Ireland Munster 4.7 -1.4 Leinster 8.7 3 Ulster 9.1 0.9 Getting Worse Manufacturing 46.5 Other Service 34 IT and Comms 23.7 Real Estate 8.7 Entertainment 7.7 Agriculture, Forestry and Fishing 6.6 Public Administration 5.1 International Bodies 4.3 Top Five Prompter Payers – Ireland Region September 21 Change from Aug 21 Cavan 0 0 Leitrim 0 0 Limerick 0 -22.6 Longford 0 -13.6 Offaly 0 0 Bottom Five Poorest Payers – Ireland Region September 21 Change from Aug 21 Monaghan 91.8 0 Carlow 64.2 -0.8 Wexford 48.2 2.1 Kilkenny 21.1 21.1 Kerry 14.9 -3.4 Top Five Prompter Payers – Ireland Sector September 21 Change from Aug 21 Energy Supply 0 0 Water & Wste 0 -34 Wholesale and retail trade 0 -4.4 Transportation and Storage 0.8 -19 Mining and Quarrying 1.2 -18.3 Bottom Five Poorest Payers – Ireland Sector September 21 Change from Aug 21 Manufacturing 56.6 46.5 Business Admin & Support 42.2 -14.4 Agriculture, Forestry and Fishing 37.6 6.6 Other Service 34 34 Real Estate 26 8.7 Advancing the credit profession / www.cicm.com / November 2021 / PAGE 34
ADVERTORIAL Win-Win Invoice Finance The product putting credit teams – and their customers first. DAILY warnings of rising inflation and disruptions across multiple supply chains due to labour shortages are giving many CFOs sleepless nights. If the pandemic was one big challenge for receivables teams, the forecast for the economy is another. So how can credit controllers find ways to help their customers through these unprecedented times whilst also helping themselves? The options used to be few, and none of them came without either an unpalatable cost or admin overhead. Now, however, trends in consumer credit have percolated into the B2B sector and one company has re-engineered credit solutions for the digital age, with a strong bias on making the customer experience seamless and friction-free for credit teams and their customers. Chief Operating Officer at Data Interconnect and former investment Banker Guy Miller said: “We wanted to help our clients – corporate credit teams – to help their customers without harming the customer-creditor relationship. We came up with a solution that is new and different – we enable AR teams to offer extended payment terms to customers without increasing their own DSO or creating financial debt for them or their customers.” The product, called Corrivo Finance, is woven into the e-Invoicing platform that provides credit teams with the tools for e-Invoicing, collections and disputes management, and now offers finance. Working with leading insurers and investment banks, Data Interconnect has come up with a way for credit teams to offer customers 30 or 60 extra days’ credit. There is a cost to this, but it is far less than credit card APRs. It can be paid either by the customer, or by the supplier as a loyalty incentive. “The FMCG and Construction sectors have been badly hit by supply chain issues, and our clients are looking to protect market share and increase loyalty from their best customers by offering more time to pay at no cost to the customer. They are also offering smaller customers with cashflow issues a practical, low-cost solution to ride through the current times,” said Guy. In addition to offering extended credit terms to buyers, the company offers Advanced Credit to suppliers, paying them the full invoice value on day one, while permitting customers to pay on standard or extended terms. Both advanced and extended credit solutions offer credit teams the magic bullet of predictable cashflow and lower DSO, which in the current climate is a win-win both for suppliers and for their customers. So why is this anything new and different? To start with, the product does not require financial recourse to Supplier or Buyer (no guarantees or security, no impact on anyone’s credit rating). Secondly, the rates are extremely low and 100 percent of the invoice value is covered. Thirdly, there is no extra work for credit teams or customers, as, far from being designed as a finance product for businesses, it has been crafted as a credit solution for credit controllers and receivables teams that does not require extra admin, security or bad debt insurance. The solution is intended to enable customers to ‘buy’ more time to pay if they need it and for suppliers to accelerate cashflow. In the current times, many businesses are seeing this as a way to mitigate supply chain issues, and free up capital to help them grow by acquisition. As Guy said: “Finance products used to be designed by bankers for their benefit. We have turned this on its head and have put credit teams first, and in control over their cash flow. We are a customer-first organisation and this product is an extension of our commitment to corporate credit teams.” Data Interconnect is a corporate partner of the Chartered Institute of Credit Management. www.datainterconnect.com The solution is intended to enable customers to ‘buy’ more time to pay if they need it and suppliers to accelerate cashflow. Advancing the credit profession / www.cicm.com /November 2021 / PAGE 35
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CM magazine Nov2021

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