The September 19, 2017 episode of the Receivable Savvy Podcast features our second interview with Ed Jordan, Chief Financial Officer with Billtrust.  In this episode, Jordan provides an overview of what organizations need to know when attempting to speed cash flow.  The discussion covers:

  • What supplier organizations should keep in mind when trying to improve payment, reduce DSO and increase cash flow?
  • The difference between a P-Card, Credit Card and Virtual Card.
  • How supplier organizations can take advantage of ACH and use it in an efficient way?


The post What Organizations Should Know About Speeding Cash Flow appeared first on Receivable Savvy.

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00:00:07hello everyone and welcome to the receivable Savvy podcast I'm already Martin founder and managing director of receivable Savvy what are the cash process by Ed Jordan Chief Financial Officer with build trust and today will cover for the speeding cash flow in maximizing customer payment options and which organization
00:00:45my pleasure honey thanks drive me absolutely so so talking about speeding cash flow and so we we we hear about different solutions house wiring ization can speed improve cash flow and these days it seems like if I organization what did they keep in mind when they're trying to really improve payment reduced ESO and basically have a very healthy cash flow question it has evolved quite a bit in recent years the key to this find the right solution there are multitude of ways to customers prefer to pay and a lot of that has evolved through the the Advent and popularity of
00:01:45networks and it's really important to make sure you understand the best and most efficient way for your customer to make a payment and then make sure you got the the available solution for them to actually get that payment to you so we talk about the past that are are famous like I'm having exclusions are really designed to automate the invoice the cash process and from a specific The Groovy DS cells which one of the cornerstones what we do it's a function of us being able to accept payments or have her customers accept payments through our online portal they can receive ACH or credit card payments they have the ability to take an ACH or credit card instructions directly through an inbound phone call to a call center on after the use of another one of are portals and in many cases are payment comes in automatically from the accounts payable networks that customers may be using or buyers may be using for the suppliers
00:02:45and through that they'll be a requirement except through the accounts payable Network either an ACH transaction a credit card transaction or more more popular now is a virtual card transaction so are quantum Payment Solutions provides the ability for these clients or customers of ours to receive all methods of payments and today we're seeing a lot of electronic payments being driven to BJP Network and a lot of challenges in and around virtual card Acceptance in weave automated that process as well but that the key to getting your vso's down is making easier for the customers and that means providing Alternatives that the customers prefer to use to get those payments in a virtual car payment and so how would you explain to her audience with the differences between say traditional key card credit card or or virtual car
00:03:44yes the dancing part about virtual cards is there they're typically one-time-use we call them cars but really it's a card number one time use card number for a fixed dollar amount for a 6 payment they are typically generated by these accounts payable networks as a mechanism for helping improve the cost of the payment for the buyer and it seems with me virtual card comes in with a truncated number within the last 6 digits of the referral card are provided through an email to the supplier and then the supplier needs to go online to a web portal to get the remaining portion of the virtual card number so it's very cumbersome and problematic it's created a lot of problems intrepidation Inn in suppliers today in terms except virtual card payments but our solution virtual card solution actually want to make that completely so that those truncated card number for sent directly into an email
00:04:44address that our system maintains and monitors and utilizes automatically locks into the beyond the portals to get the remaining portion of the credit card I put your card number and then process the payment along with no surprise the remittance information which we have because we produce the invoice for the supplier as well so many cases in automate the processing speeds up the process getting the virtual card information in place but also provides the clean remittance on the backend such that the supplier can apply the cash and that's really where the DSO Improvement cops gave me cash and faster and getting a reply faster right thing real option for Supply organization what are some of the ways that these organizations of a c h
00:05:44right through rebuild Trust
00:05:48sure so easy it's been around for awhile it's become very prevalent in the B2B space which is primarily where we focused I think the reality of it is that in order for somebody to utilize ACH in an efficient way again it could be required to supplier to have an online portal where the invoice can be presented electronically and then the invoices can be viewed dispute it and paid through the portal and a payment option there include pay via credit card pay via ACH traditionally
00:06:25all transactions had a two or three-day delay in terms of them being actually process them credit to a suppliers account under the same day ACH scenario those funds will be credited same day and the reality there is it helps a lot of ways again reduction of the SOS but also by having that same day clearing from suppliers point of view it helps clear the client their their customers account so I could be a customer that's got to fix credit limit they could be approaching a credit limit and they got to wait 2 or 3 days for the nice thclear and the same to you see a check can clear same day and then release new products or services that client so it has a lot of potential in terms of reducing PSL it also helps speed at which the client's account on this posted too so that you can certainly increase Revenue as well bye I saw him or that client in a shorter. Of time
00:07:25the other thing about same to you if you choose it's very cost-effective much more cost-effective than traditional Solutions and other clients appreciate that fact as well in this episode in the previous episode still surprises me is I'm sure it surprises remember folks in this in this space in this industry why organization still love paper checks and sell some Supply organizations when we spoken to directly and then this information shows up in the research that we do they love receiving your text and cell
00:08:15what does love affair
00:08:19paperwork in your opinion why you think that's the case and even if companies were still married to pay per text is there a way to at least introduce some some automation as far as that's concerned
00:08:37yeah I think is going to be to be spaced paper paper checks are still there and will be there for for a short while at least 3 hours of is a lot lot of these relationships involve delivery of goods and services in many cases are there may or may not be credit terms issued and there's cash on delivery and that cash is usually deliver in the form of a check in case with her are credit terms I do think that some people like the additional float they get from mailing a check in to take me a couple days to clear to the vacuum system I think all in all I think the benefits of electronic payments are going too far outweigh the benefits of the additional float that's involved in the church Lisa Jackson I think we spoke in the past the end of Workforce younger Millennials aren't used to you having a bank account level of writing a check so I think it's BC I'm younger Workforce in place I think we'll see Much More Much More
00:09:37Sonic needs what's a good news is is that there still are solutions for processing piece of paper Jackson on Main that process traditionally the problem with paper checks is that they would have to be received into a lock box at a bank site by the bank then keys in the information from the check and from the Remote device is being sent and then that has to go back and be processed by the supplier and in many cases there are bad keystrokes that are in there or bent images that are presented so that makes it a little difficult to actually do the cash application specialist situation somebody's not paying the full amount of the invoice we have are quantum cash application solution it's an automated intelligent system that uses OCR and enforcement Elgin today so we read Jack and remittance information on that sent into a lock box an image files produce and then it's fully integrated into the open balance before
00:10:37come out of any Erp system so basically we can take an image file from the bank that's all very simple thing and we just an image file apply are artificial intelligence to it and it had basically will provide you know an 80 to 95% match rate on those documents and then process it automatically back in the Erp system through an integrated payment file that automatically apply for cash so it takes a lot of cost out of it by not having to have the kingdom by the bank but also improves the efficiency of it cuz it's not really requiring relying I should say on somebody seeing in perfectly about the open balance about the invoice amount for standing in the open balance report and other information on the the invoice
00:11:35so so there is still some hope for organizations that are married to text into the full-fledged transition to
00:12:06yeah I think you got to real benefits out of there first of all it improves the SOS cuz you get these
00:12:13posted much faster to the system don't need a room of people handling this Cash Up Creations be so you get the SS faster you've eliminated head count because you can automate the process and there's a great there's a great team that and it really improve accuracy in as well so lot of benefits of doing it and yes there is there's a great solution today for those folks they're still receive a paper check sent again. Paper check in the system for a while so we need a good way to produce those and help drive to FL and increase calf prints by the time we're ready to retire those Millennials live taking over and everything is in transition to electronic so we are right up against the end of our conversation
00:13:13we would love to have you back sometime
00:13:17would love to do whatever you always appreciate talking to you thanks again yep same here on this episode of the receivables happy podcast and we will see you next time take care

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