Cash prediction super accurately using the network effect
a blog series dedicated to Cash people
Online sales make scaling easy, but at the same time, customers' purchase and payment behavior can be sporadic. More than anything else, this affects cash. The faster our business decides to grow, the worse the cash losses become.
Cash prediction starts from predicting Customer behavior.
Use network effect to predict Customer behavior
Our money is in our bank account and customers’ pockets. That’s why rule number one is to predict our customer’s (or buyer’s), payment behavior. An entrepreneur is like a banker, who needs to understand the buyer’s risk and when that can be converted into cash.
Like us people, buyers have different payment behaviors. Even the same buyer can pay a sales invoice differently to different sellers. The more critical the product is, the faster and more predictable the buyer’s payment behavior is. Industry practices or quality issues also reflect payment times.
The more users, the better value and predictions all users get
Accurate prediction of our customer purchase and payment behavior requires a lot of data to understand behavior patterns, and our data is not enough. The network effect means, that the more users, the better value and predictions all users get. On top of that, effortless machine learning can do the hard work for us super accurately. It senses even the weakest signal affecting customer behavior and can predict invoices that have not been sent yet.
Accurate prediction of futures events enables us to react on time, even more than 30 days earlier. It gives us peace of mind and much better liquidity.
riskrate is a superior 30–90 days Cash forecast using data fusion and machine learning, with a strong network effect.
