How technology can shorten the time from invoice to payment

Time is one of the most essential factors when it comes to payment, invoicing and not least debt collection.

All theory and practice shows that the shorter the time from work being done to invoicing, reminder letters and the collection process - the greater the chance of a payment being made.

The reason is often simple: the more efficient a creditor is at getting invoices sent out - and possibly reminders if payment is missed - the clearer it is that the creditor cares about payment. Debtors often tend to prioritize those creditors who actually send out reminders for payment over those who don't.

Another important reason to have an effective dunning procedure is that the debtor can go bankrupt or disappear completely over time. The faster you act, the greater the chance of recovering your receivable.

Automations

Automation has made its mark on modern ERPand accounting systems such as e-conomic and Microsoft 365 Business Central - and with good reason.

Automations can perform all the actions you normally do manually, such as postings, follow-ups and sending reminders. This can reduce the time from when an invoice is due until the first reminder or collection notice is sent.

The logic behind automation is often based on an "If this - then that" structure, i.e. a trigger that sets an action in motion. For example, when a period has expired, one or more actions must be taken.

For example, if a payment is not registered within a given period, the system automatically sends a reminder letter - without you having to lift a finger.

Automations are usually easy to set up, and the time you invest in setting them up will quickly pay for itself. Most ERP systems offer standard solutions that can be activated with a few clicks.

Payment options

Many companies only offer a few payment options - often cash or invoice only. Unfortunately, this can lead to customers delaying payment.

The more payment options you provide, the easier it is for the customer to pay - and the faster you get your money.

For example, if you only have giro cards, the customer is forced to pay via online banking - something many find cumbersome.

If you supplement this with MobilePay or other simple solutions, your customer can pay in seconds. This makes payment faster and more convenient - and improves your cash flow.

Automatic credit lookup of customers

A third option for shortening payment times is to perform ongoing credit checks on customers.

Checking your customers daily, weekly or monthly can help you stay ahead of bad payers. If you have work in progress for a customer with a bad credit rating, or you're missing payment on previous invoices, you can choose to stop work or speed up the reminder and collection process.

This is where our subsidiary Qatchr can help. Qatchr brings together the market's most reliable credit management tools in one platform - from quick credit lookups and thorough data washing to continuous monitoring of both private and business customers. This gives you a confident and data-driven basis for setting clear credit limits, identifying at-risk customers and responding in time.

With Qatchr you can:

Run credit reports and detect payment remarks, bankruptcy risks and hidden ownership
Get notified when your customers' financial data changes
Minimize the risk of fraud and financial loss

In short, Qatchr protects your business from bad payers and ensures you always have the latest information when making decisions.