Sidetrade reveals B2B global payment trends from its unique Data
Lake with an industry-first predictive payment intelligence map of
20.7 million companies worldwide
- Data aggregated and anonymized from over 593 million B2B
transactions worth $4.6 trillion, from 20.7 million buying
companies worldwide
- Global payment trends over the last three years
revealed:
- US companies tenth in the world for lengthy payment
delays
- UK and Ireland among top five worst in Europe for payment
delays
- Economists at Cebr say increasing costs and
interest rate hikes are “making late payments more likely”
Global AI-powered Order-to-Cash
platform, Sidetrade has today revealed global payment
trends from the Sidetrade Data Lake.
Never-before-seen in the industry, the global payment trends -
based on the payment behavior of 20.7 million buying
companies worldwide - enable companies, governments,
and analysts to make data-driven decisions in a time of
uncertainty.
Developed by Sidetrade’s best-in-class engineers
and leading data scientists since 2015, the Sidetrade Data Lake is
the heart of Sidetrade’s innovative Order-to-Cash AI solutions to
enhance cash optimization. It is used by data-driven companies
(i.e. suppliers) to understand and predict buyer payment
behaviors.
A unique tool within the Order-to-Cash market,
it is a repository of data of past B2B payment transactions. It is
comprised of more than 593 million payment experiences worth a
total of $4.6 trillion processed over the last three years from
20.7 million buyers worldwide. Today’s launch provides users with a
free and interactive map into aggregated and anonymized insights
from the Sidetrade Data Lake.
A resource for companies, governments, and
analystsThe publication of global payment trends from the
Sidetrade Data Lake is an industry-first and comes as global
uncertainties and increasing inflationary pressures place a greater
emphasis on cash and credit management.
Updated on a quarterly basis, the global payment
trends give users access to never-before-available insights into
how buyers pay their suppliers depending on country and industry,
enabling them to better monitor customers’ payment trends across
the world, predict payment behavior and decrease collection time.
This provides invaluable support for effective decision-making and
payment negotiations, thereby cutting days sales outstanding
(DSO).
Sidetrade CEO, Olivier Novasque,
commented: “Protecting and accelerating cash flow has never
been so critical as bad debt risk and inflation are dramatically
increasing everywhere. This can best be achieved if companies
harness enough customer behavior data and become more
forward-looking. Data science and artificial intelligence are
essential to fighting against late payment. Since each buyer’s
payment behavior is different, a dedicated and automated collection
strategy is needed to be efficient.
“We’re delighted today to offer a first look
into the Sidetrade Data Lake and bring the power of true AI to
companies at a time when they need it the most.”
Innovation and digital transformation to
support businessesThe Sidetrade Data Lake harnesses the power
of Sidetrade’s next-generation AI technology (aka Aimie) to predict
the likelihood that a customer will pay late. Aimie then recommends
customer-specific collection strategy based on buyer payments
patterns, and other data insights.
Sidetrade Chief Product Officer, Rob Harvey,
added: “In B2B companies, every CFO wants industry benchmarking
data on their customer payments; they thrive on data. But how well
do finance teams actually know their customers? Do they know who is
likely to pay them late? Which industries wait the longest to get
paid? Now, CFOs can finally understand their customer behaviors,
better understand their competition, and make smarter decisions;
much like Tesla uses driver data to make innovative changes,
enhancing and optimizing the driver experience.
“With the Sidetrade Data Lake, we unlock
enterprise data and simplify access to payment data management. At
Sidetrade, we are committed to saving time for businesses,
exploring smart efficient processes in the Order-to-Cash cycle,
assisting in decision-making, and sharing information in real-time.
Sidetrade is the Waze for business payments!”
The Sidetrade Data Lake is the result of years
of hard work of collecting, cleaning up, matching, and enriching
huge volumes of data. Transactions between Sidetrade’s customers
(the suppliers) and their buyers within the Sidetrade Data Lake are
aggregated, anonymized, and layered with algorithms to determine a
predictive payment metric for each analyzed buyer company. This is
the engine behind Sidetrade’s AI technology. It takes
decision-making support to the next level, providing data-based
recommendations on the most effective collection, dispute
resolution and risk control actions.
Mark Sheldon, Chief Technology Officer of
Sidetrade: “We are proud to offer a first look at our Data Lake
today and showcase the depth of our data, technology and true AI
capabilities.
“What is particularly exciting about the
Sidetrade Data Lake technology, is the fact we’ve not only
succeeded in getting large amounts of data cleansed, matched and
into one place, but that we’ve also layered that with
next-generation AI and predictive capabilities, and are able to
measure its value. This latter part in particular is something that
many companies often struggle with, and why we’re proud to be able
to clearly demonstrate the value to our customers.”
Best and worst payment behaviors around the
world revealedLeveraging its Data Lake, Sidetrade reveals the
best and worst markets and industries for late payments over the
last three years.
A global snapshotOn average, companies
around the world pay supplier invoices 21 days late – taking the
length of time between an invoice being issued to getting paid, to
a total of 53 days on average.
Scandinavian businesses tend to pay the quickest
overall, in particular Sweden, with a delay of just 7 days, well
below the global average.
Getting back to pre-pandemic unpaid invoice
ratiosOver two years on from the start of the pandemic, the US,
France, and Italy still haven’t fully reverted back to their
pre-pandemic unpaid invoice rates according to the Sidetrade Unpaid
Invoice Tracker. Conversely, Belgium, Spain, the UK, and the
Netherlands now have better unpaid invoice ratios than before the
start of the pandemic.
France holds the title for the worst amongst the
seven countries tracked, with 25% of the value of all overdue
invoices as of April 16, 2022.
27-day delays in the USUS companies rank
tenth globally for longest payment delays, with a mean of
27 days.
The industry with the shortest payment delays in
the US is Manufacturing: 22 days. The worst industries are
Financial Services & Insurance, and Leisure & Hospitality:
30 and 31 days, respectively.
Payment disparities in EuropeAcross
Europe, there are significant disparities in payment delays from
country to country, ranging from 7 days (Sweden) to 26 days late
(Ireland).
On average, it takes companies in Europe 45 days
to collect payment – a mean delay of 16 days.
UK & Ireland exceeding European average
for payment terms and delaysCompanies in the UK and Ireland are
among the top four worst in Europe for payment delays, with means
of 21 and 26, respectively. This is despite both countries having
higher payment terms (34 days in the UK, 31 days in Ireland)
than the European average of 29 days.
In the UK, the industries with the shortest
payment delays are Utilities & Energy at 19 days, and Retail
& CPG at 20 days. Industries in the UK with the longest payment
delays are Financial Services & Insurance at 25 days, and
Public Services, HR Services and Transportation & Logistics at
24 days.
Looking at the Sidetrade Unpaid Invoice Tracker,
almost all UK industries appear to have recovered from the pandemic
in terms of late payments, most showing pre-pandemic unpaid invoice
rates. The exceptions are, Public Services, Other Services and the
Food industry. The latter has risen from 14% at pre pandemic
levels, to 21% of invoice values being deemed late (10+ days after
their due date) as of 16 April 2022.
France is amongst the worst performing European
countries for late payments. Their sectors with the shortest
payment delays are Retail & CPG, and Manufacturing, both at 17
days. The worst industries in France for late payments are Leisure
& Hospitality, and Public Services at 24 days. France still
hasn’t recovered from the Covid-19 crisis when it comes to late
payments. The rate of unpaid invoices across every industry in
France is still above pre-pandemic level, at 22.7%.
Josie Dent, Managing Economist at Centre for
Economics and Business Research (Cebr): “After the hit
businesses took during the pandemic and lockdowns, which caused a
significant rise in late payments, the global economy is now
experiencing a new source of pressure. Across the world, inflation
is accelerating, driven by energy prices and supply chain
disruptions. While both of these factors were already at play at
the start of the year, the conflict in Ukraine and sanctions on
Russia, as well as recent lockdowns in key Chinese cities have
further added to the inflationary environment and the outlook for
price growth. These increasing costs for fuel, energy and raw
materials add to businesses’ financial strain at a time when many
are still recovering from the pandemic, making late payments more
likely.
“Therefore, as businesses’ bills come due, often
at higher prices than previously, many will find themselves having
to prioritize which they can afford to pay immediately, and which
will need to wait.
“In the US, consumer price inflation rose to
8.5% in March, up from just 2.6% a year earlier. In the meantime,
the average share of unpaid invoices by value rose from 14.5% on 31
March 2021 to 17.5% on the same day in 2022. Businesses will also
be affected by the Federal Reserve’s interest rate rises expected
this year. In March, the Fed voted to increase interest rates for
the first time since 2018, with projections pointing to a further
six rate rises in 2022 alone, raising costs for those with
debt.
“Businesses in other countries are also facing
rising costs and interest rates. The share of late payments by
value stands at 24.7% in France in the latest data (16th April),
compared to 21.0% at the start of the year, while inflation picked
up to 5.1% in March.”
The Sidetrade Data
LakeData Science analysis20.7 million buyer companies593
million+ invoices processed in the last three years$4.5 trillion
worth of invoices
MethodologyDaily analysis of
the data hosted in the Sidetrade Cloud leveraging machine learning
algorithms
Reference period1-Jan-2019
through 31-Dec-2021
How the Sidetrade Data Lake
works
The Sidetrade Data
Lake leverages data collected from multi-tenant SaaS Software. The
data within the Sidetrade Data Lake has gone through a complex and
layered process of matching, crawling, enriching and multi-step
machine learning.Highly effective machine learning is made possible
by the huge volume of supplier data within Sidetrade’s cloud-based
Data Lake.Sidetrade’s AI technology (AKA Aimie) utilizes a
combination of machine learning and algorithms to offer
recommendations on cutting DSO. Because the system and models are
deployed in real-world scenarios, Sidetrade is uniquely able to
accurately prove and monitor the Data Lake’s value, and
performance.
This announcement comes shortly after
Sidetrade’s recognition as a Leader in the first Gartner® Magic
Quadrant™ for Integrated Invoice-to-Cash Applications.
Investor
relationsChristelle Dhrif
+33 6 10 46 72
00
cdhrif@sidetrade.com
Media
relationsRebecca
Parlby
+44 7824
505 584
bparlby@sidetrade.com
About
Sidetrade (www.sidetrade.com)Sidetrade
(Euronext Growth: ALBFR.PA) provides a SaaS platform dedicated to
securing and accelerating cash flow. Sidetrade’s next-generation
AI, nicknamed Aimie, analyzes $4.6 trillion worth of B2B payment
transactions daily in the Sidetrade Cloud to predict customer
payment behavior and attrition risk of more than 21 million
companies worldwide. Aimie recommends the best cash collection
strategies, intelligently automates actions on the Order-to-Cash
process, and dematerializes customer transactions to enhance
productivity, performance and working capital management. Sidetrade
has a global reach, with 300 talented employees based in Paris,
London, Birmingham, Dublin, Houston, and Calgary, serving global
businesses in more than 85 countries. Amongst them: Tech Data,
KPMG, Nespresso, Hearst, Expedia, Manpower, Securitas, Randstad,
Engie, Veolia, Inmarsat, and Bidfood.
For further
information, visit us at www.sidetrade.com and follow us on Twitter
@Sidetrade.
In the event of any
discrepancy between the French and English versions of this press
release, only the English version is to be considered.
- Sidetrade reveals B2B global payment trends from its unique
Data Lake
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