Business Payment Networks Help CFOs Deliver Cash Flow Certainty

For organizations facing uncertain economic times, swift access to accounts receivable (AR) can mean the difference between profitability and financial risk. Capturing payments quickly can be a challenge, as how and when business-to-business (B2B) or other clients choose to send payments can be dependent upon multiple factors, of which businesses can control just a few.

“The AR Transformation Solution: Easing And Accelerating Payments From Business Customers,” a PYMNTS and Billtrust collaboration, reveals how businesses can take control of AR processes and accelerate incoming payments. The report looks at the challenges of AR management and how businesses can overcome them quickly to support ongoing growth.

Payments modernization now seen as key to business growth

Quick access to payments can be critical for growing businesses that need reliable access to working capital. According to the playbook, most businesses are attempting to modernize payment processes. As businesses try new ways of managing payments, the inconsistencies of incoming payment flows often continue.

As the playbook notes, accounts receivable drives business growth. After new accounts are won, however, there is no guarantee that orders will quickly convert to profits. Payments frictions — such as disputes, decoupled remittances and payments and lack of compatibility with payor preferences — can slow or even stop business growth. For many businesses, the answer has come through the use of AR automation tools via a third-party solution.

AR automation can streamline revenue flows

B2B payors may use multiple payment systems, have differing payments preferences and have customized accounts payable (AP) and AR systems that provide inconsistent payment processing times. One solution is to modernize payments management through the use of a single, agile AR system that B2B payors can access and use easily.

This approach to innovation can make payments easier for both sides of a transaction. Suppliers can address each friction point by implementing a proactive digitization strategy. This process can be accelerated when suppliers utilize an innovative AR platform in conjunction with an integrated payments network. The latter allows organizations to manage all payments through a single dashboard, while the former will permit the organization to have true visibility of incoming accounts and the management of invoices and data reporting.

The playbook features a case study highlighting the success of Natus, an innovative medical devices manufacturing and sales company that has served B2B customers for more than 80 years. According to the company, the use of automation was key to managing rapid sales and business expansion.

“We’ve obviously had challenges with very rapid growth, which, of course, impacts AR quite significantly,” stated Matthew Tinsley, shared services analyst of finance. “It’s one of the reasons why we have tried over the last few years to get as much automation as we can.”

To learn more about the complexities of B2B transaction management and how businesses are facing these challenges, download the playbook.