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Understanding the Challenges in B2B Finance

In the ever-evolving landscape of B2B finance, the transition from signed agreements to usable capital presents a significant challenge for many companies. As outlined by Shalom Ben Or, the founder of fintech platform DealSync, this issue stems from various complexities that can arise particularly for enterprises with unconventional revenue models. In the fourth quarter of 2024, the secured finance market recorded outstanding debts totaling approximately $12.2 trillion, highlighting the scale of financial transactions involved, yet not every signed deal translates into immediate cash flow for businesses.

The B2B Finance Landscape

The dynamics of B2B finance are quite intricate, especially for companies with complex or non-standard revenue streams. Recent data from Atradius indicated a staggering 43% of credit-based B2B sales in the U.S. were overdue in 2025, largely due to pressures exerted on customer cash flow. This not only underscores the disparity between available financing and the actual liquidity issues companies face, but it also raises questions about how businesses can convert deals into cash effectively.

On the podcast episode of 'Disruption Interruption,' Ben Or delves into the crux of the issue. Traditional sales models often fall short of aligning well with innovative revenue structures prevalent in today's market, particularly with the rise of AI and outcome-based payment models. For many B2B firms, including those outside the realm of straightforward subscription services, there can be a staggering 20% to 30% of potential revenue tied up in cumbersome processes leading to cash flow bottlenecks.

Why Cash Flow Becomes Trapped

The disconnect often lies in the timeline between securing a sale and converting that agreement into cash that can be utilized. Sales teams might successfully close deals, yet finance teams must dissect the arrangement to understand how payment terms, discounts, available financing options, and working capital requirements will influence overall liquidity. Oftentimes, as companies grow, they introduce additional layers and individuals to handle deal desks and debt management — yet many organizational decisions remain reliant on human judgment and manual processes, which can disrupt cash flow.

CFOs frequently find themselves reacting to cash flow dilemmas instead of preventing them, particularly when conventional financing methods do not fit a business’s unique revenue circumstances. This environment not only poses risks for financial planning but also creates potential delays in capital access. CFOs pursuing outside loans may inadvertently enter a trap, where familiar but outdated lending options prolong their wait for necessary funds.

Making Complex Revenue Financeable

To address these challenges, DealSync has devised a framework that seeks to transform cash flow management into a programmable entity, thereby eliminating reliance on disconnected manual processes. In Ben Or's terms, the cash flow decisions should not merely be reactive responses but a structured approach based on solid data and technology. The platform delineates the CFO’s roles into three layers:
- Systems of Record: These hold crucial financial information.
- Workflow Tools: These facilitate the movement of tasks and approvals through the finance processes.
- Judgment Layer: This supports CFOs and finance leaders as they navigate higher-stakes decisions surrounding debts and liquidity positions.

In this innovative structure, DealSync focuses on the judgment layer, helping firms identify revenue that lies dormant between closing a deal and the cash flow it generates. By rationalizing this revenue into an asset that lenders can assess, companies can streamline how they present potential deals to financial institutions, even if these deals don't conform to traditional lending criteria.

New Horizons for CFOs

For organizations outside of conventional lending models, this approach is particularly beneficial. AI-driven companies, for instance, may be compensated based on delivery outcomes rather than upfront payments, which complicates financing significantly. Hardware manufacturers may need capital investment prior to any revenue generation, creating further hurdles. However, with DealSync's framework, businesses can craft their revenues into viable assets, providing clearer opportunities for lenders to evaluate.

Ultimately, the goal centers around empowering CFOs to exert control over their cash flow from the beginning. By adopting a proactive stance towards cash flow management, finance leaders can navigate the complexities of B2B finance more efficiently and avert liquidity crises. As Ben Or encapsulates, the aspiration is to shift the financial judgment upstream, ensuring that CFOs can reassert control over cash flow rather than remain burdened by after-the-fact resolution strategies.

Visit the Disruption Interruption podcast to further explore such transformative discussions and insights into the future of finance, brought to you by industry disruptors like Shalom Ben Or.