As delinquent B2B payments rise, more businesses are investing in accounts receivable management technology and revamping processes to boost collections.
Leading invoice factoring company Viva Capital says ongoing payment delays in the B2B sector are creating a shift in the way businesses think about their accounts receivable (AR) management. The vast majority is now investing in specialized technology and revamped processes to alleviate the burden or will be in the near future. Full coverage of the topic can be found in “10 Collections-Simplifying Accounts Receivable Management Tips,” which is now live on VivaCF.net.
The report comes on the heels of PYMNT’s announcement that nearly 14 percent of B2B payments are overdue in small firms generating less than $50 million annually, while those generating between $50 million and $500 million report 14 percent of receivables being overdue.
“Despite the fact that this is a universal problem, businesses are looking inward to solve their accounts receivable management challenges,” explains Armando Armendariz, Director of Business Development and Partner of Viva Capital.
He notes that nearly three-quarters of businesses are either already leveraging digital AR processes or plan to within the next year according to CFO surveys. This helps eliminate confusion and errors that contribute to billing disputes, which finance officials have long reported as one of their greatest challenges. It also opens the door for automation and electronic billing and payment systems, which can encourage prompt payments and free human staff to follow up on only the most pressing accounts.
“There will always be a need for the human element,” Armendariz continues. “When businesses pair this kind of powerful technology with people who show their client they care and want to work with them, it’s a huge boost for customer service too.”
Armendariz says that invoice factoring can eliminate these sometimes-awkward client conversations as well. By working with a third party that pays the business for the invoice right away and waits for payment from the client, both parties get some financial breathing room. The arrangement often leads to stronger relationships and business growth, he adds, and has been a primary consideration for those inquiring about Viva’s factoring services as of late.
Business owners interested in learning more about invoice factoring are encouraged to request a complimentary consultation at VivaCF.net.
ABOUT VIVA
Founded in 1999, Viva helps B2B businesses of all types accelerate cash flow through specialized funding solutions like factoring, accounts receivable financing, and asset-based lending. Their simple qualification process makes it easy for small and mid-sized companies to get vital funding despite lack of credit or time in business. Additional information is available at VivaCF.net.
