How to overcome data challenges to boost deal monitoring effectiveness
March 24, 2025
In the fast-paced world of receivables securitization, corporates and funders must efficiently monitor the performance of underlying assets. Accurate, real-time data on receivables is critical to understanding asset quality, cash flow and overall portfolio health. However, many companies still struggle with fragmented, manual data management processes, relying on outdated spreadsheets and infrequent audits. These traditional methods make it challenging to gain the transparency needed for informed decision-making and efficient financing.
By consolidating data from various systems, it’s possible to gain reliable, real-time insights that help both corporates and funders optimize their money whether it’s at rest, in motion or hard at work.
Performance monitoring and the benefits of increased transparency
Securitization relies on actively monitoring the performance of the underlying assets, especially where asset volumes are high and diverse. But corporates and funders often struggle with a lack of real-time visibility into portfolio performance.
For corporates, especially those with multiple ERPs, managing accounts receivables data across various systems can be challenging. Information is often scattered, making it difficult for treasurers to get a clear, consolidated view of performance. Manual processes, like spreadsheets and audits, add to the complexity and consume valuable resources.
Managing accounts receivables data across various systems can be challenging.
Funders rely on timely, accurate data to monitor their clients’ portfolios. Traditional methods such as field audits do not provide the near real-time insights needed for informed decision-making. In some cases, funders demand frequent updates, but manual reporting struggles to keep up.
Analysis of historical trends
Corporates and funders often face challenges in accessing reliable, historical data on receivables performance. Without automated reporting, gathering this information can be time-consuming and error-prone, limiting its usefulness for securing financing or assessing sales trends and customer payment behaviors. Manual data collection makes it harder to spot patterns or leverage insights during commercial negotiations.
Manual data collection makes it harder to spot patterns or leverage insights during commercial negotiations.
Certain sectors, like BNPL and factoring, see a clear need for better data tracking. Monitoring receivables over time helps these businesses understand performance trends and predict future outcomes. During the pandemic, logistics companies used detailed receivables data to adjust strategies, reallocating resources based on industry performance and preparing for shifts from supply chain bottlenecks to inventory surpluses.
The real value of real-time monitoring
The need for more streamlined and automated solutions has never been clearer. To stay competitive, corporates require a comprehensive view of their accounts receivables, while funders depend on up-to-date information to assess risk and offer favorable terms. Real-time monitoring of receivables performance can enhance operational efficiency, improve customer relationships and facilitate new opportunities for both sides.
Real-time monitoring of receivables performance can enhance operational efficiency, improve customer relationships and facilitate new opportunities for both sides.
A centralized solution that consolidates data from different ERPs enables corporates to track accounts receivables performance in real time, streamlining their processes. For funders, it provides reliable, near real-time reporting, which can be set up to deliver daily or weekly updates – something manual audits simply cannot match.
Automated reporting solutions address these issues by providing a centralized, real-time record of receivables performance. This data not only aids in securing funding but also supports strategic decision-making and scenario planning. The use of such data is growing in sophistication across the securitization industry and beyond. While not yet widespread, the potential for AI models to predict collection outcomes is promising. This advancement could unlock new opportunities for both funders and corporates, pending regulatory approval.
The evolution of technology in this space has not only enhanced operational capabilities but also fostered a culture of accountability. The reliability and usability of modern platforms has prompted some funders to mandate their use as a funding condition, reflecting their trust in the transparency and efficiency these technologies provide.
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