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🌾 The Hidden Crisis in Agricultural Machinery AR

From $400K combines to precision irrigation systems, agricultural equipment manufacturers and their suppliers are often financing their customers—whether they mean to or not. How? Through generous payment terms like "harvest pay," where dealers and farmers only pay after the growing season. These trade terms, while necessary to close deals, expose manufacturers and Tier-1 suppliers to massive AR risk, especially in times of economic volatility.

🔹 How the Payment Chain Works

1. Farmers buy equipment from dealers on delayed or seasonal terms.

2. Dealers order equipment from the OEM or a Tier-1 supplier.

3. Payment from dealer to OEM/supplier is often on Net-90 to Net-180 terms—or longer.

4. If the farmer delays payment due to crop failure, tariffs, or price drops, the dealer delays payment upstream.

5. Now, the OEM or its suppliers are holding the AR risk—often for months.

📉 Real Financial Exposure

• One Tier-1 supplier to a top ag machinery OEM reported holding over $140M in AR at any given time—much of it due post-harvest.

• In one case, 40% of that AR was still unpaid 90 days after harvest.

• Vasul.ai helped a mid-market supplier flag 22 at-risk dealers before harvest season—resulting in $3.2M in early collections.

⚡ The External Shock Factor

Agriculture is uniquely exposed to:

• Tariffs: Since the US-China trade war began in 2018, China imposed heavy tariffs on U.S. soybeans and other crops. This drastically reduced U.S. exports, leading to a supply glut at home. When supply goes up but demand drops, prices fall—fast. Lower commodity prices meant lower income for farmers, who in turn delayed payments to their dealers. Those dealers then deferred payments to manufacturers, stretching AR even further up the chain.

• Commodity volatility: Falling corn or wheat prices reduce liquidity across the supply chain.

• Weather risk: A poor harvest season affects every receivable tied to it.

This creates the perfect storm: seasonal, high-ticket receivables + macroeconomic shocks = AR instability.

🔗 How Vasul.ai Helps Unlock Cash

1. Dealer Credit Monitoring: Track dealer credit risk using real-time data from Nected, D&B, and ERP payment histories.

2. AR Prioritization: AI agents flag at-risk invoices based on seasonality, invoice patterns, and historical disputes.

3. Early Warning System: Predict default likelihood before harvest even begins.

4. Next-Best-Action Automation: Vasul's agents (like Riley and Coda) guide your team to contact the right dealer, at the right time, in the right tone.

🚀 Built for Agtech Innovators and Mid-Market Suppliers

Whether you're a Tier-1 supplier to a major OEM or a next-gen agtech company selling smart tractors through a dealer network, Vasul.ai lets you:

• Reduce DSO by 15–20%

• Prevent dealer write-offs

• Shorten your cash cycle—without changing your ERP

✅ Bottom Line: Pilot-Proven. No Heavy Lift.

AR is the untapped lever in agricultural supply chains. If 30% of your receivables arrive late every harvest, you’re sitting on millions in preventable cash drag.