Smarter factoring starts with smarter data
Factoring is evolving at breakneck speed, primarily due to technological advancements, changing market dynamics, and regulatory (more and tighter rules) changes. What used to be a fairly anonymous back-office process is now a strategic engine for growth and flexibility. But there is a catch… You can only unlock the true potential of factoring 2.0 if your data is working for you.
Legacy IT stacks are more often than not ill-equipped for making the real-time decisions that a modern and winning approach to factoring requires. In this blog article we will show you how a smarter attitude towards data management, the right invoice factoring software, and modular factoring platforms allow you to relieve the pressure on your finance teams and master the challenges that come with factoring in the age of digital first!
Common factoring challenges and obstacles
Smart, fast and flawless factoring processes are the ideal that every company strives for. However, achieving this perfect situation often means overcoming a number of serious challenges and obstacles. One of the major ones is working with outdated (legacy) systems. The combination of disconnected systems that lack the ability to communicate with each other, time-consuming manual processes (think about the need to manually comb through thousands of Excel cells and complex formulas to pull the right data from your systems), and static risk assessments are still common in many factoring environments and create operational drag.
Even if legacy systems still “narrowly cut it”, chances are that senior employees who know these factoring solutions inside out will retire in the upcoming years. Making the chances of finding adequate and affordable replacements slimmer and slimmer. Even more challenging in the search for better, more modern factoring software and platforms is the thin tightrope between large IT investments in digital transformation and keeping costs down.
And last but not least: companies must remain compliant with ever more complex and tighter rules and regulations and keep up with the technological transformations (the emergence and evolution of AI, big data, IoT, new fintech solutions) that are rapidly reshaping factoring environments, business landscapes, and society as a whole.
Germany and the Nordics: Different markets, the same shift
From the viewpoint of factoring processes and solutions, there are both differences and similarities between the Nordic countries and Germany. In Stockholm and Oslo the trend is clear. Decision makers want flexibility, security, and transparency. And all of that without adding complexity to their factoring processes and solutions. The focus is mainly on reliability, automation, and modularity.
In Germany, innovation is often driven by agility and digital-first banking norms. This approach prioritizes online and mobile banking solutions to deliver convenient, fast, efficient, and personalized financial services. Delivering seamless experiences through various digital platforms, including websites and mobile apps, is key.
The common factoring denominator that these two geographically and culturally distinct regions share? They both expect solutions that integrate seamlessly, reduce financial and administrative overhead, and support scaling across multiple entities and markets.
Build for now and for what is next
The recipe for success when it comes to present-day and future factoring? Unlocking your data and getting more out of this richly stocked treasure vault of information. The right platform and factoring automation software allow you to pull in, combine and organize data from a multitude of sources (Excel sheets, mailboxes, on-premises databases, cloud repositories, and more). The right factoring platform also enables you to visualize and thoroughly analyze data, giving you both a big-picture view and detailed look at your factoring processes.
Aptic CLRV is made to smarten up your factoring processes. Start with core risk and compliance features and gradually expand to customer portals, workflow engines, or new product modules as your business grows. The platform is the ideal factoring solution in a world in which technological change is one of few constants. CLRV adapts to your business needs and ecosystem instead of the other way around, offering a seamless experience that ensures all your financial services are in perfect harmony. A high level of scalability and the choice to deploy the platform on-premises, hosted or hybrid makes the solution highly flexible and puts you in complete control of your financial infrastructure.
The result: Factoring becomes an intelligent engine for boosting growth and creating financial stability
When your factoring platform is able to connect the dots from data sources to decisions, your financial operations shift from reactive to proactive. This means you gain:
- Faster time-to-decision. This allows you to access necessary funds faster and optimize cash flow.
- Improved risk management and more effective underwriting processes.
- Reduced manual work. Free your workers from mind-numbing repetitive tasks and speed up factoring processes.
- Embedded compliance. You are able to integrate compliance checks and controls directly into factoring processes and workflows. Such a proactive approach greatly reduces the risk of non-compliance and hefty fines.
- A better customer experience. This makes you a more reliable partner to your customers.
- A setup that scales, audits, and evolves with you and your business needs.