Unlocking Trapped Cash: How Automated Cash Application Cuts DSO

Cash tied up in outstanding receivables is trapped capital that limits growth and resilience. In many B2B organisations, collections teams are perpetually firefighting-chasing late payments and applying cash manually across siloed systems. This reliance on static, human-in-the-loop processes is the main driver of high DSO.

The shift from reactive chasing to predictive action

Saldi Tech’s approach targets the two primary drivers of high DSO: slow cash application and sub-optimal collection prioritisation. Our automated reconciliation stack and matching engine are designed to remove manual bottlenecks and turn AP/AR into a predictable, auditable flow.

1. Automated Cash Application
Manual cash application is tedious, slow and error-prone. Our matching engine automatically applies incoming payments to the correct invoices and ledger entries, even when payments are partial or require split allocation. The result: faster applied cash, fewer unapplied items, and immediate visibility into true receivable balances.

2. Predictive Collections Prioritization
Not all outstanding invoices are equally valuable. Using transaction patterns and historical payment behaviour, our predictive scoring surfaces the invoices most at risk of delay, enabling teams to prioritise outreach and focus on the accounts where collector effort has the greatest impact.

3. Automated, Contextual Customer Outreach
We automate routine communication (payment reminders, confirmations, and tailored follow-ups) with context-aware templates that reflect customer behaviour and terms. This reduces operational load while increasing collector productivity and improving customer experience on routine cases.

The strategic impact

Automating cash application and collections converts trapped receivables into usable liquidity and frees finance teams to deliver strategic insight. Typical outcomes we observe in conservative pilots: material reductions in exceptions, significantly lower manual processing time, and improved cash forecasting accuracy. The business result is a leaner close cycle, better working capital, and a finance function that can operate at higher strategic value.