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• 02 Jul

  Using ChatGPT AI To Find Invoice Finance

  ChatGPT and other AI (Artificial Intelligence) driven sites and apps are being used increasingly for all sorts of things ranging from writing content to finding services. I wanted to see how ChatGPT would function as an invoice finance broker so I used this AI to try and find an invoice finance company for a typical client. The results are below.

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  Using ChatGPT AI To Find Invoice Finance

  The objective of this exercise was to find out if ChatGPT would do a better or worse job than our invoice finance experts at finding a facility for a typical prospective client.

  Briefing ChatGPT To Be A Broker

  This is how I briefed ChatGPT to be a broker:

  I am a temporary staff recruiting company in the UK needing an invoice finance company that will finance just a couple of invoices. Who can provide that service? Ask any questions that you need before you begin

  Clarification Questions Asked By The AI

  This is what ChatGPT asked me to clarify the brief:

  To assist you better, I need a bit more information:

  1. Invoice Amount: What is the typical value of the invoices you need financed?
  2. Industry: What industry are your clients primarily in? This can affect the type of finance company that will be most suitable.
  3. Creditworthiness of Clients: Are your clients generally high credit or low credit risk?
  4. Frequency: How often do you anticipate needing this service? Is it a one-time need or recurring?
  5. Existing Relationships: Do you already have a relationship with any finance companies or banks?
  

  These details will help me recommend the most appropriate invoice finance company for your needs.

  My Answers

  These were my answers:

  Answers Representing Those Of A Typical Small Company Seeking Selective Invoice Financing

  1. About £10K each invoice
  2. Healthcare
  3. RPO debtors (neutral vendors) so good companies but not sure how well-rated they are
  4. Initially 2 invoices but maybe more if I need some additional cash flow in future months
  5. No just my business bank account which is with [Independent Bank That Doesn't Offer Invoice Finance]

  ChatGPT Invoice Financing Company Recommendations

  These were the recommendations that ChatGPT gave me:

  Thank you for the details. Based on your requirements, here are some invoice finance companies in the UK that can potentially finance a couple of invoices for you:

  1. Company A
  Overview: Company A offers selective invoice finance, allowing you to choose which invoices to finance.
  Features:
  Finance individual invoices
  Fast approval process
  Competitive rates
  Suitable for: Businesses needing flexibility in financing only a few invoices.
  

  My Analysis Of Recommendation A

  NO - This company has changed its name from the name that was given. It does offer selective facilities but not to a small business of this size. 

  2. Company B
  Overview: Company B provides selective invoice finance for businesses, with a focus on simplicity and speed.
  Features:
  Finance single or multiple invoices
  Quick access to funds
  No long-term contracts
  Suitable for: Businesses looking for a quick and straightforward financing option.
  

  My Analysis Of Recommendation B

  YES - This company does offer selective invoice financing to smaller organisations, it is the only one of ChatGPT's recommendations that could offer the right type of facility to this client. However, it's not the only option that we would put forward to a prospective customer.

  3. Company C
  Overview: Company C is a well-known provider of invoice finance solutions, including selective invoice finance.
  Features:
  Flexible finance options
  Industry expertise, including healthcare
  Quick access to funds
  Suitable for: Businesses requiring flexible funding solutions with industry expertise.
  

  My Analysis Of Recommendation C

  NO - This company is well known and a good independent but they don't offer selective facilities hence they would not be able to help our client.

  4. Company D
  Overview: Company D offers selective invoice discounting, enabling businesses to get funding for individual invoices.
  Features:
  Selective invoice discounting
  Fast and flexible funding
  Competitive rates
  Suitable for: Businesses needing flexible, short-term financing.
  

  My Analysis Of Recommendation D

  NO - Again a great independent provider but another one that doesn't offer selected invoice financing.

  5. Company E
  Overview: Company E provides a range of invoice finance solutions, including the option to finance individual invoices.
  Features:
  Flexible funding options
  Industry-specific expertise
  Rapid access to capital
  Suitable for: Businesses seeking tailored finance solutions.

  My Analysis Of Recommendation E

  NO - Yet another strong independent provider but again it doesn't offer this type of selectable invoice finance. Once again it also suggested an old company name that was rebranded a while ago.

  Invoice Finance Broker Recommendations?

  ChatGPT then gave me contact details for each of the options and suggested that I reach out to them. At no point did it suggest getting in touch with an invoice financing broker.

  Conclusions About Using ChatGPT As An Invoice Finance Broker

  Based on this exercise I would not recommend using Chat GPT as a substitute for a human invoice finance broker. The process it followed to understand my needs was reasonable but its recommendations were way off base and completely misleading. Only 1 of the 5 recommended providers even offers the type of service that I was requesting.

  Where Did It Get This Incorrect Information?

  When I asked the AI to provide the URLs where it had confirmed that those providers offered selective facilities, it only put forward two articles featuring just company A. The same articles were offered as justification for the other providers the AI recommended.

  Get Help From A Human Invoice Finance Broker

  Sadly, this piece of research has confirmed that this AI is not yet at a point where it can be relied upon to broker an invoice finance quote so we would suggest you get in touch with a human expert who will provide a personal service. Call Sean on 03330 113622 for help.

  By Glenn Blackman