Originally published on April 29, 2025 by Billtrust
On-site, it’s the heavy equipment that gets the job done. Behind the scenes, however, finance teams carry the weight of cash flow management – and that’s a whole different kind of heavy lifting. Whether it’s a light equipment company, an equipment dealership, or material handling company, CFOs in this sector need faster cash deposits. Strengthening cash reserves helps support inventory and growth strategies, mitigate macro-economic risk, and protect the bottom line. Indeed, it’s a large load to bear considering the realities of accounts receivable in this industry:
- 100% of equipment companies struggle with late payments, waiting over three months on average to collect. That’s more than double the recommended 30 to 45-day benchmark.
- Late payments cost the industry a staggering $280B, forcing tough decisions just to stay above water.
- In the U.S., about half of equipment companies go out of business within 5-10 years due to cash flow issues.
The pressure is real, but so is the opportunity for improvement using accounts receivable (AR) automation.
According to a recent survey by independent research firm Vanson Bourne, 75% of equipment companies adopting AR automation report significant cash flow improvements. This shows this sector is leading the way in AR automation, AI integration, and digital transformation, with the highest percentage of companies reporting measurable value (88%) and ROI (70%) from their AR automation investments.
75% of equipment companies adopting AR automation report significant cash flow improvements.
So, how exactly is accounts receivable automation making the biggest impact for equipment companies, and where is the untapped potential? Let’s dive into the key findings from this new research.
3 Areas Where Equipment Companies are Getting More Out of Accounts Receivable Automation
In this industry, capital is tied up in long project cycles and payment delays are the norm, but the Vanson Bourne study identified three areas that are driving improvement for AR:
1. Governance and Compliance: Less Risk, More Control
Over 40% of organizations say accounts receivable automation helps them stay ahead of e-invoicing regulatory demands and other compliance requirements by enforcing consistent, audit-ready processes across the entire AR lifecycle.
+40% of equipment companies say AR software helps them stay ahead of governance and compliance requirements.
2. Payment Optimization: Lower Costs, Smarter Policies
Over 40% say they’ve cut costs and complexity by optimizing payment processing fees and policies. For example, with help from AI in AR software, adopters get recommendations showing which accounts should switch payment methods to curb costs. Thanks to advanced automation features, suppliers can reduce fees and improve efficiency, as well as enforce terms in real-time without any manual oversight. Learn more about the use cases for AI finance tools.
3. Invoice Processing: Faster Payments, Stronger Cash Flow
Roughly 36% report faster invoice delivery with AR automation, citing impressive results. On average, Days Sales Outstanding (DSO) dropped by 15 days and Days to Pay (DTP) improved by 8. These numbers speak volumes for both equipment companies and dealerships balancing growth with capital-heavy inventories and demands.
On average, DSO dropped by 15 days and DTP improved by 8 days.
Focusing on these high-impact areas makes accounts receivable more strategic. Ask yourself: does your AR software do the bare minimum (with a few automated workflows), or is it helping you unlock strategic advantage through new insights and reduced risk?
How Equipment Dealers are Digitally Transforming Accounts Receivable
It’s not enough for CFOs to just balance the books. They’re expected to champion innovation within their organizations. Research results reveal three areas with the greatest potential.
Automation: Strong Adoption but Still Room to Grow
If you’re a finance leader in the equipment sector, we likely don’t have to tell you how crucial accounts receivable automation is. The study shows this industry has the highest level of automation compared to other sectors, but there’s always room for more progress. Automation today is more than just rule-based workflows powered by robotic process automation – AI is opening new doors for automation through advanced analytics and machine learning. Our best advice is to keep uncovering new insights through holistic AI intelligence.
Automation today is more than just rule-based workflows. AI is opening new doors.
Predictive analytics engines should ingest data from multiple internal and external sources. Here at Billtrust, our AI automation platform monitors the payment behaviors of all your buyers and keeps track of macrotrends across 13 million buyers in our data network – the largest in the industry.
Ensure automation systems use optical character recognition capabilities paired with advances in machine learning. This way matching and reconciling invoice and payment data happens with faster speeds and sharper accuracy that grows smarter with every new document format. In today’s age of AI, unstructured data shouldn’t slow the pace of AR operations.
Digital Invoicing: Strengths Lack Industry Standardization
Equipment companies and dealerships are ahead of the curve in e-presentment adoption, with 60% – the highest of any sector surveyed – having already moved from print to digital invoicing. It’s a shift that pays off big (no pun intended) in the form of streamlined operations, lower processing costs, and fewer errors. In an industry where transactions are complex and invoice volumes run high; these gains aren’t just nice to have – they’re essential.
Yet, the industry isn’t united in this front. If you’re not advocating for digital transformation in this area, now’s the time. Many organizations are standardizing digital payments – the U.S. federal government just joined the list.
AI Integration: Large Opportunities in GenAI and Agentic AI
Equipment companies and dealerships are lagging in AI adoption; however, the data shows that those who have taken the leap report the highest satisfaction with their investments. AI continues to move fast. Just when you think you understand it, something new pops up – but don’t worry. You don’t have to be deep in the tech space to understand it or use it to your advantage.
The latest development in AI is called Agentic AI. Built on the foundation of Generative AI (GenAI), it introduces intelligent virtual assistants – or “agents” – capable of operating with autonomy. The potential impact is significant according to Gartner and should be well understood by financial leaders in every industry.
If you’re looking to better understand how Agentic AI works and what it means for finance, read this 5-minute guide.
Leading AR software providers are integrating this technology directly into the platforms their customers already use – enabling smarter, faster, and more efficient workflows through virtual assistants. Billtrust’s AI-powered Finance Co-Pilot, is a prime example. As the platform continues to evolve, it’s advancing toward full Agentic AI capabilities that empower finance teams not just with information but intelligent, autonomous action.
Dive deeper into the Vanson Bourne research by downloading the complete study.
It’s Time to Advance Your Automation
If you’re still using manual or fragmented processes, it’s time to start automating repetitive tasks so your team can focus on the big picture of business growth. Research proves that AR automation delivers tangible results, not just by accelerating cash flow, but by powering financial strategy: unlocking liquidity, reducing risk, and fueling stability and growth. As finance processes become more complex and technologies like GenAI and Agentic AI reshape the landscape, forward-thinking finance leaders won’t just improve cash availability – they’ll gain the agility to outpace competitors and kick growth into overdrive.
May 7, 2025
2 minutes read
