The Art of Leverage Interview

The Future of Payment Term Optimization : An AI-Powered Journey with Calculum

The world of working capital management is undergoing a seismic shift, and at the forefront stands Calculum.  

Calculum’s mission? To revolutionize payment terms using cutting-edge Artificial Intelligence (AI) and advanced analytics. 

In this interview, Tiffanie Kelly, host of the ‘Art of Leverage’ Series,  speaks to Oliver Belin, Calculum’s CEO and delves into the heart of the company’s transformative approach, exploring how data-driven insights are reshaping the landscape for businesses worldwide. 

TK: Could you give us an overview of what Calculum does?

OB: Absolutely! We at Calculum specializes in optimizing payment terms for businesses and we achieve this by harnessing the power of AI and analytics, through our proprietary software, known as the ADA Platform.  

Our goal is to help companies make informed decisions about their payment processes, ultimately improving their working capital and cash flow.

TK: That’s fascinating! Can you elaborate on how Calculum achieves this optimization?

OB: Imagine a company that currently pays its suppliers within a 60-day window. Using our AI driven ADA Platform, we analyze their historical payment data. But we don’t stop there. We also compare their payment terms with industry benchmarks. For instance, if the average payment terms in their sector are 30 days net, we highlight the potential savings if they pay their suppliers earlier.

TK: That sounds like a game-changer. How do you assist companies in securing better terms?

OB: Excellent question! We provide negotiation scripts filled with insights tailored to each company’s situation. Armed with the data-backed insights, companies can confidently negotiate for improved payment terms. It’s all about maximizing value while maintaining healthy supplier relationships.

TK: Now, let’s delve into the technical side. How exactly does Calculum use AI and analytics to analyze payment data?

OB: Our toolbox includes a mix of advanced techniques. Machine learning algorithms sift through vast datasets, identifying hidden patterns and trends. Natural language processing helps us extract valuable information from unstructured text. And network analysis reveals intricate connections between companies. Together, these methods allow us to uncover insights that traditional methods might have missed.

TK: Impressive! Can you share an example of how Calculum’s AI models work?

OB: Certainly. Suppose we want to identify companies that are open to negotiation. We train a machine learning model using a dataset of successful negotiations. This model predicts which companies are likely to be receptive to changing payment terms. It’s like having a crystal ball for negotiation readiness!

TK: That's really helpful information. So, who are your ideal customers?

OB: Our ideal customers are companies of all sizes, from small businesses to multinational corporations. Whilst we cater to companies of all sizes, we're also seeing a lot of interest from companies across different sectors, including technology, healthcare, and manufacturing.

TK: And how do companies get started with Calculum?

OB: It's easy. They can just sign up for a free demo on our website and provide us with some basic information about their company, such as their industry, size, and annual revenue. We'll then analyze their payment data and provide them with a report with insights into their payment terms and recommendations for improvement.

TK: That sounds great. So, what are some of the benefits of using Calculum?

OB: There are many benefits, including:

• Increased cash flow: By optimizing payment terms, companies can free up cash that can be used for other purposes, such as investing in growth or repaying debt.
• Improved financial health: Better payment terms can help companies improve their financial health by reducing debt load and improving their credit score.
• Enhanced negotiating power: With better insights into the market, companies can negotiate better payment terms with their suppliers.
• Reduced risk: By optimizing payment terms, companies can reduce their exposure to credit risk.
• Increased efficiency: By automating the negotiation process, companies can save time and resources.
• Improved compliance: With Calculum’s ADA Platform, companies can ensure that they are complying with all applicable payment terms regulations.

TK: Those are all great benefits. So, what's next for Calculum?

OB: We're excited to continue growing our business and helping more companies optimize their payment terms.  Some of our newest features include an index that provides insights into the right payment terms for different industries and the ability to track the performance of payment terms over time.  In addition, we're also working constantly on developing new features and capabilities.

TK: Those are all great things. I'm sure companies will be very interested in those features.

OB: We hope so! We're committed to helping companies get the best possible payment terms, and we believe that the new and upcoming features will be a valuable addition to our ADA Platform.

TK: Well, thank you so much for the interview, Oliver. It was great to learn more about Calculum and its plans for the future.

OB: Thank you for having me.  It was my pleasure.