Deal Momentum and Receivables Data

Moving swiftly through the analysis and due diligence of a funding opportunity is key to maintaining deal momentum, and ultimately converting an opportunity into a live working capital program.

This process can be particularly challenging for portfolio-style receivables programs, where it’s important to understand the makeup of an entire debtor portfolio and not just focus on the top “x” or larger debtors.

Data plays an important role in this process, but there’s often a fine line between how much information you ask a seller to provide versus what the seller can provide relatively easily. We’ve probably all encountered situations where the seller can’t easily provide what we’re asking, becomes disinterested, and ultimately switches off.

Over the last 15 or so years, we’ve seen a significant change to corporate attitudes regarding data sharing, and until relatively recently, most mid-cap corporates were very reluctant to share their receivables data. I make the deliberate distinction between a mid-cap and an SME, as banks and insurers were often able to put greater pressure on an SME to share its data or else risk not getting their funding or insurance program.

Mid-cap and larger corporates increasingly understand the arbitrage between sharing their precious receivables data and achieving the working capital or insurance program they need. Technology is also helping this process, and the reliability of automated data connectors, coupled with their ease of implementation, can be a game-changer if positioned properly. Not only do these automate the process of collecting and transferring detailed receivables data, but in the eyes of the corporate, they also outsource the often onerous responsibility and compliance elements of accurate data provision.

Data connectors and our automated PASS reports give us the ability to reliably shorten the triage and due diligence processes, maintaining deal momentum, providing a competitive advantage, and hopefully improving conversion rates.

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