SunGard’s AvantGard GetPaid solution brings analysis to Receivables

Outstanding balances from the accounts receivables (A/R) process typically account for the largest source of potential funds available to any company.  SunGard has an interesting credit and collection product called GETPAID that applies a calibrated risk based algorithm to assess collection risk which in turn will drive collections prioritization.  GETPAID allows corporations to aggregate receivable data across multiple internal systems for a single view of collections risk. This allows corporations to become more accurate with cash flow forecasting.  GETPAID comes with workflow and automation, building work queues to send notifications for accelerated collections.

The software is being used by hundreds of clients in 40+ countries.

How GETPAID enhances Cash flow forecasting

The single biggest factor in determining how to best use a specific receivable is the probability of payment.  When managing thousands of credit accounts, the ability to segment risk into a high probability of on-time payment, possible delinquent, to a high probability of loss helps to target internal resource management.  GETPAID assigns a probability of late payment or of loss for a company’s trade receivable book.  Various factors are taken into account in the model, including credit rating based on agency data, industry, geographic location, the invoice value, age of balance, their remaining credit limit, their ability to use alternative methods of payment, historical payment behavior, etc.

The output enables a company to take the best approach on how to segment their collections effort, plus enables more accurate cash flow forecasting.   In addition, corporate customers with various asset based lending in place can use their receivables as collateral and this is a big interest with the Sungard client base.

These types of technologies are being applied to enable more effective liquidity management.

The biggest difference between how SunGard scores the portfolio and credit bureaus like Dun & Bradstreet and Bureau Van Djick is how SunGard uses and leverage a customer’s own data to predict risk of receivable failure.

So how does Sungard differ with Supplier Networks?

Functionally, supplier networks can simply be looked at as next generation EDI-hub approaches with various application capabilities off their core connectivity infrastructure.  The data they contain can be truly rich, down to the transactional deep level (e.g., line-level invoice detail).

While networks and companies own internal systems can archive purchase orders, shipping details, and invoice information, the two big open questions for any data pool (besides data quality) are:

  1. Can you actually track an invoice to a payment and include those details so you have a true cradle to grave view of the transaction?
  2. Does the data include dispute capabilities / dispute resolution?


As more granularities occur around the above questions, better credit underwriting can be done.  The big opportunity will be getting funding around foreign receivables, as they tend to have less data around these transactions.  If you can solve for visibility and transparency, and overlay with credit insurance, the market for financing foreign receivables will improve.

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