Don't Forget Better Receivables Management When Discussing Faster Payments
The business cash cycle and the importance of managing the key elements of working capital remain a top focus of successful companies. While payments technology and effectiveness have gained the lion’s share of attention and investment during the technology surge of the past several years, receivables management capability is a major component of cost efficiency, cash flow effectiveness, and client satisfaction. Receivables management remains one of the more difficult parts of the cash cycle to influence. Therefore forward-thinking companies and their financial service providers need to prioritize this important series of processes and take a close look at supporting technology.
While traditional lockbox services have gained wide adoption given the continued presence of paper in the payments and collections process, increased digital technology adoption is creating opportunities for banks and their clients to find effective methods to improve their cash flow and payments processing efficiencies. The Mercator Advisory Group report, Improving Receivables Management: Ignore at Your Own Peril
, presents compelling reasons for companies to review their receivables management strategies, processes and systems. Mercator describes existing and emerging approaches in receivables management along with some of the vendors who provide solutions in the space.