Key Industry Challenges
1.
Poor Cash Flow for Trainers and Service Providers
Trainers, vets, farriers and other service providers often experience significant cash flow constraints. The industries billing and payment cycles are often fragmented and inconsistent, with many providers waiting extended periods to receive payment for services already rendered. This delay disrupts business operations, limits reinvestment opportunities, and creates financial stress across the supply chain.
2.
Credit Risk and Lack of Financial Due Diligence
Service providers are frequently required to extend credit to horse owners or agents they do not know, often without any form of credit assessment or validation. This exposes them to high default risk, as there is no standardised process for verifying a client’s creditworthiness or ensuring payment security. The absence of structured financial control undermines trust and increases the cost of doing business.
3.
Inefficient Training and Administrative Operations
Administrative inefficiencies are widespread. Trainers and Service Providers often spend considerable time managing paperwork, invoicing, and communications that take attention away from horse management and welfare. Manual processes, fragmented systems, and redundant data entry contribute to operational inefficiency, human error and lost productivity.
4.
Limited Validation of Services Before Billing
Currently, there is little to no validation of services performed on a horse before billing occurs. This lack of verification can lead to disputes, inaccurate charges, and, in some cases, fraudulent billing. Without a transparent, auditable record of services rendered, both service providers and owners face uncertainty regarding the accuracy of financial transactions.
5.
Insufficient Owner Transparency and Communication
Horse owners often receive minimal information about their horse’s progress, training or health, leaving them disconnected from their investment. This lack of visibility reduces owner satisfaction, engagement and confidence in the management of their horses. In an era where data transparency drives trust, the industry’s communication practices remain outdated and opaque.
6.
Fragmented and Unpredictable Billing
Owners can receive multiple, uncoordinated invoices from various suppliers each month, often at unpredictable times. These fragmented bills make it difficult for owners to manage cash flow, reconcile expenses, or understand the total cost of ownership. The lack of consolidated billing also contributes to confusion and administrative burden.
7.
Lack of Financial Visibility and Real Time Reporting
Trainers and service providers operate with limited visibility over their financial performance. Without integrated systems or real time reporting, they cannot accurately track revenue, expenses, or profitability. This lack of insight prevents informed decision making, weakens financial control, and restricts business growth potential.
8.
Exposure to Unknown or Fraudulent Suppliers
In some cases, owners receive invoices from unknown or unauthorised suppliers, and on rare occasions, encounter fraudulent billing. The absence of a centralised verification system or standardised supplier registry allows bad actors to exploit the system, damaging the industry’s credibility and financial integrity.
The thoroughbred racing industry’s current financial and administrative framework is fragmented, inefficient, and vulnerable to risk. Addressing these challenges requires a unified, technology enabled solution that enhances transparency, validates services, streamlines billing, and secures payments. By modernising these processes, the industry can restore trust, improve cash flow, and strengthen the long-term sustainability of all participants, from trainers and service provides to owners and investors.