Defining the 'Predicting Late Payments' Problem and Data Requirements
Welcome to the core of this book: an end-to-end project that brings together everything you've learned so far. Chapters 1 through 8 have equipped you with Python fundamentals, core data science libraries, data connection strategies, cleaning techniques, and an understanding of the machine learning workflow. Now, we will apply these skills to solve a tangible business problem directly relevant to SAP professionals: predicting late payments.
Identifying customers likely to pay late is a critical task for any finance department. Late payments negatively impact cash flow, increase operational costs associated with collections, and can strain customer relationships. Proactively identifying these risks allows businesses to take timely action, such as sending reminders, adjusting credit limits, or engaging in personalized communication, thereby improving financial health and efficiency.