More businesses are automating accounts receivable (AR) functions to improve cash flow, but for most, that automation is fragmented and full of gaps.

Eighty-nine percent of 200 executives polled in November and December 2021 from companies with 1,000 to 10,000-plus employees said their businesses will invest more in AR automation and payment technologies in 2022, according to study released Tuesday from payments automation firm BlueSnap.

However, none of the respondents described their organization’s AR process as completely automated at present. Just above half, 50.5%, said their company’s AR process is mostly automated, 49% said it is mostly manual, and 0.5% said it is completely manual.

The study also found:

• 83% of respondents’ organizations have mostly or completely automated invoice generation;
• 58% have mostly or completely automated setting and managing customer payment plans;
• 57.5% have mostly or completely automated sending invoices;
• 54% have mostly or completely automated account reconciliation;
• 53.5% have mostly or completely automated embedding a payment link in invoices; and
• 45.5% have mostly or completely automated payment reminders, disputes and other customer payment events.

In addition, 78% of respondents said their organizations are looking to AR automation to improve invoice accuracy. Sixty-seven percent turned to automation to help with late payments.

SMB tools, business lending automation attract investors

Fintechs globally pulled in a “gold rush” of $16.4 billion in funding during Q4 2021, and most of those funds went to companies offering small and midsize business (SMB) and business lending tools, according to a report by Forrester Research. Of those companies, automation is key in driving advancement.

The report also notes that the largest portion of funding — some $6.1 billion, or 37% — went to U.S.-based fintechs.

In addition, the report found:

• Fintechs offering SMB tools pulled in the most funding at $2.9 billion, or 18% of all funding. The biggest winner was San Francisco-based Deel, which raised $425 million. The company offers an international hiring platform that rolls in local labor laws and allows businesses to switch between different currencies.
• Business lending fintechs attracted the second-highest funding at $2.4 billion, or 15% of the total, and the standout was India-based Aye Finance, which raised $338 million. The company has developed lending processes designed to include even micro businesses by using machine learning to consolidate data points from social and demographic sources in loan decisioning.
• Consumer lending drew the third-highest amount of funding for Q4 at $2.1 billion, or 13% of funding, and of that total, Zopa snagged $300 million. The London-based digital banking company offers credit cards, savings accounts and other financial products.

Global fintech funding reached $89 billion for all of 2021, which is more than two and a half times the $34 billion raised in 2020 and more than twice the $42 billion in both 2019 and 2018, according to the report.

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