Customers today want the greatest possible flexibility when making payments. According to the EHI’s annual payment study, the most popular payment options are PayPal and purchase on account – as well as “buy now, pay later” (BNPL), i.e. the use of consumer credit. However, companies in e-commerce or with financial, insurance and supply contracts run the risk of numerous risks such as
- Delays in payment
- Complete loss of payment
- Problems with liquidity
Accounts receivable management (AR management) ensures that debtors pay their receivables on time. In addition, it has a direct impact on working capital and cash flow. AR management protects your company from payment defaults and liquidity bottlenecks. A functioning AR process is therefore a key requirement for the financial stability of companies, especially in economically volatile times.
Finance managers must adapt their accounts