How to outgun economic turbulence with payment data

In an ever-changing economic landscape, businesses are constantly seeking ways to remain resilient. Economic uncertainty, whether caused by global crises or market fluctuations, poses significant challenges. However, payment data, derived from invoicing and customer transactions, plays a pivotal role in building customer profiles, analyzing payment behavior and identifying early signs of changes in creditworthiness.

By leveraging the insights derived from payment data, companies can manage credit risks effectively, and build resilience through optimized invoicing and receivables management.

“Payment data is more than just numbers on a ledger report or within a BI tool; it’s a strategic asset that can lead businesses react to changes quicker and manage cashflow with more accurate forecasts”, Peter Hiltunen, Managing Director at Ropo Capital Finland explains. “In an increasingly data-driven business landscape, the capability to harness and analyze data presents a significant competitive advantage.”

Hiltunen points out that payments data can be an invaluable asset especially during economic downturn when customer’s payment ability can vary with the market situation. Companies that invest in data analytics and adopt a data-driven approach to decision-making will be better equipped to ensure their long-term success and sustainability.

Use data to optimize your cashflow

Payment data and invoicing are subjects that Hiltunen is strongly dedicated to. He is the leader of Ropo Capital Finland, the leading provider of invoice lifecycle services in Finland, and possesses a wealth of expertise in this domain.

Ropo Capital is changing the Nordic market with its proprietary Ropo 24 software platform, developed in-house to automate and streamline invoicing and receivables management, reduce manual data processing, and improve transparency through real-time reporting.

“We believe in transparency and data-driven decision-making – every financial decision-maker should be able to follow the payment behavior trends and changes in real-time. Transparency is the key; sustaining a truly sustainable credit policy or effective risk management requires access to customer payment data.”

Hiltunen advises businesses to monitor payment delays and debt collection rates closely. During economic downturns, it’s crucial to track customer behavior with precision and on shorter timeframes. Instead of relying on quarterly reporting for key metrics, consider monthly, weekly, or even daily monitoring.

“Use the data to improve your customer understanding, identify patterns and trends, and pay attention to changes – especially sudden or recurring shifts in payment delays or debt collection volumes. These can provide valuable insight to detect early signs of payment difficulties well before they appear in the credit record.”

“Real-time payment data transforms how companies view invoicing; it’s not only a fundamental aspect of a company’s operations but also a rich data resource that should be harnessed with greater intelligence”, Hiltunen concludes.

Read more at: ropocapital.fi

Peter Hiltunen chooses 6 key KPIs and Metrics to track:

1) Percentage of Invoices Paid On-Time

2) Days Sales Outstanding

3) Average Payment Delay

4) Payment Delay by Invoicing Channel

5) Debt Collection Success Rate

6) Credit Loss Ratio ment difficulties well before they appear in the credit record.”

Ropo Capital is a fast-growing Nordic leader in invoice lifecycle services. We help our clients to streamline invoicing management and gain full visibility and control of their receivables. Our invoice lifecycle service covers the whole value chain of receivables management from invoice delivery and ledger to reminders, debt collection, reporting, and customer service related to payments. As a Group, we deliver more than 170 million invoices and other documents a year.