AI-Led Credit Scoring Helps Reduce Bad Debt and Strengthen Supplier Ties

Why AI-Led Credit Scoring?

AI-driven credit scoring empowers businesses to make faster, smarter, and more consistent credit decisions by analyzing transaction histories, payment behaviors, and supplier cash flows in real-time. Instead of relying on manual checks or outdated models, it proactively flags risks, reduces bad debt, and accelerates onboarding. This strengthens supplier relationships, improves cash cycles, and gives finance teams the confidence to focus on growth rather than chasing overdue accounts.

The Client

The client was a mid-market logistics company based in the U.S., operating across the Midwest and East Coast. With more than 450 trucks and 12 distribution hubs, they serve both business and consumer customers from retail orders to just-in-time manufacturing shipments. The company manages an extensive network of domestic and overseas suppliers, making hundreds of credit decisions each month.

The Challenges

The harmful debt levels were increasing primarily from customers who had a habit of making late payments and suppliers who did not have a strong cash flow.
Inconsistent credit evaluation created gaps in approvals, allowing financially weak customers and vendors to be onboarded and causing losses.
Manual processes led to slower order processing and reactive decision-making instead of being proactive.

The Solution

An AI-driven credit scoring platform comprehensively evaluates both customer and supplier creditworthiness.
Integrated historical transaction records, payment timelines, and contract data flows into and is harnessed by a central data engineering framework.
Machine learning models detect subtle risk patterns and updated credit scores in near real-time.

UNLEASH AI-DRIVEN EFFICIENCY

The Outcome

1

35% reduction in bad debt exposure within six months.

2

50% faster credit decision turnaround, improving customer and supplier onboarding speed.

3

20% improvement in supplier payment cycle efficiency, strengthening key relationships.

4

Finance team shifted from chasing overdue accounts to proactively managing credit risk.

Technology Stack

Oracle Cloud Infrastructure (OCI) Oracle Autonomous Data Warehouse Oracle Machine Learning (OML) Oracle Data Integrator Oracle Analytics Cloud / Oracle Fusion Data Intelligence Oracle Identity Cloud Service / Identity Access Management Oracle Logging and Monitoring Oracle Application Performance Monitoring

AI/ML Models

Oracle OCI Language Oracle OCI Vision Oracle Generative AI Oracle Generative AI Agents Oracle OCI Data Labeling

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AI-Led Credit Scoring Helps Reduce Bad Debt and Strengthen Supplier Ties

Why AI-Led Credit Scoring?

The Client

The Challenges

The Solution

The Outcome

Technology Stack

AI/ML Models

Want to Leverage the Oracle Tech Stack to Fuel Growth?

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