When the internet was first introduced, it was only natural that people were skeptical. It’s human nature to fear the unknown.
In the early days of my factoring career, I distinctly remember mailing purchased invoices to debtors via snail mail. Everyone on the team knew that the faster we got those envelopes out, the faster we got paid. Several years later, factoring companies started emailing invoices directly to debtors, and today, it has become the industry standard. Talk about getting invoices out fast – this was instant! As groundbreaking as it was, though, the transition still took some time as companies needed to adapt and fully embrace this modern approach.
Just as the internet transformed the way we connect and conduct business, artificial intelligence (AI) stands on the verge of revolutionizing the factoring industry in a similar way. By utilizing AI, businesses can gain efficiency and market competitiveness, and enable their staff to focus on more important things, such as risk mitigation.
Have you considered the costs of waiting to adopt this new technology? Here are three advantages your business can gain from AI:
1. Efficiency
AI can help your team eliminate repetitive, mundane tasks. If you know anything about factoring, you know how much work is put into the purchase of just one invoice. It’s time-consuming and complex. Between data entry, verifications, credit checks, collection efforts, and posting payments, typically the larger your portfolio grows, the more staff you need to accommodate that growth. With AI, however, you can leverage technology to scale your business without adding more staff.
2. Market Competitiveness
In the competitive industry of factoring, setting yourself apart from the competition is crucial. The key to success is speed to market – in other words, how quickly you can fund your client. Embracing AI becomes a strategic move for companies looking to set themselves apart. By adopting AI, businesses can not only offer quicker funding times but also enhance customer service. This is also a key differentiator.
Experts agree, saying, factors that embrace technology and leverage digital solutions are better positioned to meet the changing needs of clients and drive market growth. Your Operations team gains valuable time by automating the tedious task of manually keying invoices and payments, helping them to focus more on enhancing the customer experience.
3. Risk Mitigation
One of the greatest fears surrounding AI is that it’s here to replace people. But AI can never replace the human effect. There’s something to be said about a seasoned factoring professional who can build a relationship with a debtor and sense trouble at the first hint of it, or spot a fraudulent bill of lading (BOL) a mile away.
With all the time that AI will save your team on mundane tasks, they can focus more of their energy on building relationships and analyzing client and debtor trends. No one knows your portfolio better than they do, so why not provide them with tools to eliminate repetitive and time-consuming tasks, allowing them to channel their energy into building relationships and mitigating fraud and risk.
To succeed in today's fast-paced, technology-driven market, you need to keep up with the latest trends to gain a competitive advantage. Don’t let fear or complacency hold you back from reaching your goals. Embracing change can be challenging, but it’s worth it.
By implementing new strategies, you can ensure that your business is scalable and your staff is focused on your business and your clients. Take a step forward and embrace AI, so you can propel your business to the top.
Contact us to speak with a factoring expert who can help you unlock your potential.
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