Deal Monitoring in Servicing and Reporting

In the fast-paced world of receivables securitisation, corporates and funders have the need to efficiently monitor the performance of underlying assets. Accurate, real-time data on receivables is critical to understanding asset quality, cash flow, and overall portfolio health. However, many companies still struggle with fragmented, manual data management processes, relying on outdated spreadsheets and infrequent audits. These traditional methods make it challenging to gain the transparency needed for informed decision-making and efficient financing.

By consolidating data from various systems, it’s possible to to gain reliable, real-time insights, supporting better business decisions and driving innovation.

Performance monitoring and the benefits of increased transparency

Securitisation relies on actively monitoring the performance of the underlying assets, especially where asset volumes are high and diverse.

Corporates and funders often struggle with a lack of real-time visibility into portfolio performance. For corporates, especially those with multiple ERPs, managing accounts receivables data across various systems can be challenging. Information is often scattered, making it difficult for treasurers to get a clear, consolidated view of performance. Manual processes, like putting together spreadsheets and audits, add to the complexity and consume valuable resources.

Funders rely on timely and accurate data to monitor their clients’ portfolios. Traditional methods, such as field audits, do not provide the near real-time insights needed for informed decision-making. In some cases, funders demand frequent updates, but manual reporting struggles to keep up.

Analysis of historical trends

Corporates and funders often face challenges in accessing reliable, historical data on receivables performance. Without automated reporting, gathering this information can be time-consuming and error-prone, limiting its usefulness for securing financing or assessing sales trends and customer payment behaviours. Manual data collection makes it harder to spot patterns or leverage insights during commercial negotiations.

Certain sectors, like BNPL and factoring, see a clear need for better data tracking. Monitoring receivables over time helps these businesses understand performance trends and predict future outcomes. During the pandemic, logistics companies used detailed receivables data to adjust strategies, reallocating resources based on industry performance and preparing for shifts from supply chain bottlenecks to inventory surpluses.

A platform that allows real-time monitoring

The need for more streamlined and automated solutions has never been clearer. To stay competitive, corporates require a comprehensive view of their accounts receivables, while funders depend on up-to-date information to assess risk and offer favourable terms. Real-time monitoring of receivables performance can enhance operational efficiency, improve customer relationships, and facilitate new opportunities for both sides.

A centralised solution, that consolidates data from different ERPs, enables corporates to track accounts receivables performance in real time, streamlining their processes. For funders, it provides reliable, near real-time reporting, which can be set up to deliver daily or weekly updates—something manual audits simply cannot match.

Automated reporting solutions, such as Demica’s platform, address these issues by providing a centralised, real-time record of receivables performance. This data not only aids in securing funding but also supports strategic decision-making and scenario planning. The use of such data is growing in sophistication across the securitisation industry and beyond. While not yet widespread, there is potential for Demica’s platform to drive AI models that predict collection outcomes—opening up new possibilities, subject to regulatory approval, for funders and corporates alike.

The reliability and usability of Demica’s platform has led some funders to require its’ usage as a condition for funding, reflecting their confidence in its transparency and efficiency.

This is the second part of a series on Demica’s transactional servicing and reporting capabilities. For more information on these, click here.