Managing Accounts Receivable (AR) has always been a challenge for wholesalers and distributors, particularly when it comes to balancing cash flow, chasing late payments and trying their best to improve operational efficiency. Traditional AR processes and the associated manual steps can lead to delayed payments, increased DSO and cash flow bottlenecks, which in today’s hyper-competitive macroeconomic environment, can be extremely damaging. Given the high stakes on the line for wholesalers and distributors in 2025, they must actively seek quick, impactful solutions to enhance cash flow management, where efficiency gains can have a direct and immediate impact on overall financial stability. 

Automation offers a timely solution, allowing enterprises to seamlessly integrate and synchronize financial data across multiple platforms and departments. This enhanced visibility into AR management not only reduces errors and inefficiencies but also accelerates collections, improves forecasting and boosts decision-making across a range of critical business areas. Let’s explore why 93% of mid-sized firms are planning to deploy automation solutions for Accounts Receivables and Accounts Payable processes.

Streamlined Invoice Tracking

One of the main areas in which automation is streamlining AR processes pertains to invoice tracking, reducing reliance on manual oversight and intervention. With intelligent invoice processing, AI can automatically generate, send and track invoices, ensuring that businesses receive payments faster. Smart reminders and automated follow-ups reduce human error and increase collection rates by nudging customers before invoices become overdue. At 40Seas we have been ideating around innovative ways to digitize key steps in global trade, one of which is our Global Accounts Receivable platform. By centralizing invoice data in a user-friendly dashboard, we help companies to easily track payment statuses, manage due dates, and expedite invoice approvals, mitigating the risk of payment delays. By connecting their ERP or accounting software, companies can enjoy a streamlined reconciliation process, matching invoices with purchase orders and delivery receipts in real-time, while collecting payments via credit card, direct debit or digital wire transfers in different currencies worldwide. 

Predictive Analytics for Ultra-Efficient Cash Flow Management

One of the most valuable attributes of AI in the context of cash flow management is the rapid analysis of historical data to predict payment behaviors. By examining patterns in customer transactions, past payment history and financial trends, AI-driven systems can forecast potential payment delays with high accuracy. This enables businesses to proactively address late payments before they become cash flow issues, reducing financial uncertainty. Additionally, AI-powered insights can help businesses optimize their collections strategy, ensuring that high-priority accounts receive immediate attention, while lower-risk clients enjoy more flexible terms. This data-driven approach not only enhances cash flow stability but also strengthens customer relationships by offering tailored financial solutions, ultimately creating a more efficient, resilient and profitable AR management system for wholesalers and distributors.

AI-Driven Credit Risk Assessment

Beyond simple predictions, AI can also assign dynamic risk scores to clients by evaluating factors such as market conditions, creditworthiness and purchasing behavior. These scores help businesses segment customers based on risk levels, allowing them to implement customized credit terms, enforce stricter payment policies or offer incentives for early payments. By identifying high-risk accounts early, businesses can take preemptive action, such as adjusting credit limits, automating follow-ups or leveraging trade credit insurance to safeguard against defaults. Suppliers can also leverage our Trade Insurance Management platform for KYB and risk underwriting, helping them make informed decisions about who to extend credit to, and under what terms. Suppliers  can set a credit limit for each customer, so when an invoice is issued, the customer can clearly see what their limit is. When they’ve passed the designated credit limit, they know they are obliged to pay the pending invoice up-front, mitigating the risk of payment delays. 

Dynamic Payment Terms and AI-Optimized Financing

Based on real-time risk assessments, businesses can offer dynamic payment terms that encourage repeat business and long term commercial engagements. Customers with a strong payment history can be granted extended terms, while high-risk accounts can be managed with stricter policies. The 40Seas Global Accounts Receivable platform enables companies to offer extended payment terms of up to 90 days to their customers, without absorbing any credit risk, so they can focus on driving sales volumes rather than debt collection and underwriting payments. 40Seas is available as an API or stand-alone platform, both of which can be seamlessly embedded into checkout portals to improve business flow and deliver more convenience to customers. 

Intelligent Dispute Resolution

The intensifying financial pressures that come with operating in today’s frenetic economy have led to a growing number of SMEs resorting to fresh air invoicing as a means to artificially boost cash flow and profitability. This deceptive practice involves generating fraudulent invoices for goods or services that were never provided, taking advantage of loopholes in manual verification processes to secure illegitimate payments from unsuspecting clients. The UK’s Intellectual Property Office recently revealed that the occurrence of misleading invoice issuance has surged by 63%. Discrepancies in invoices can lead to disputes, delaying payments. AI-powered dispute resolution tools help identify errors, match invoices with purchase orders, and automate resolution processes. This reduces friction between suppliers and buyers, improving relationships and cash flow.

Ultimately, businesses that continue to rely on outdated, manual AR processes risk falling behind in an increasingly fast-paced, digital-first economy, where automation is quickly becoming the industry standard. By embracing automation, enterprises can future-proof their financial operations, stay agile in an unpredictable economy, and position themselves for sustained growth amid evolving global challenges. 

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