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Transforming A/R with Automation and Built-In Credit Financing

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Posted by Michael Noble - 12 January, 2022

Transforming A/R with Automation and Built-In Credit Financing

It’s not easy for enterprise organizations to drive change in A/R and credit. However, with digital transformation sweeping across business units and processes, A/R teams need to keep up – not only for efficiency and cost reduction, but for the value they can and should bring to their organization. 

Apruve 4 Pillar Infographic

Automating the procure-to-pay process is the path to transforming credit and A/R.

Large enterprises are rethinking their accounts receivable using Apruve, the only provider that combines A/R automation with built-in global credit financing. With Apruve, companies are solving their biggest A/R challenges and uncovering new growth opportunities:

CHALLENGE #1: INEFFICIENCIES IN A/R PROCESSES

A/R teams that are still handling work manually are overloaded and understaffed. Days Sales Outstanding (DSO) is too high, and team performance is hampered by inefficiency. 

On average, companies that manage collections manually spend 15% of their time prioritizing their activities, 15% of their time gathering information to make collections, and just 20% of their time communicating with customers about payment.

New Strategy: Automate lower-ROI accounts.

As we discussed in an earlier blog, 80% of a company’s revenue is generated by just 20% of its customers. The other customer segment – what we call the “long-tail” – produces a high volume of transactions, but via lower-value purchases. An intelligent platform can automate the credit, collections and receivables process for long-tail customers, reducing DSO to a single day. At the same time, the fixed cost of managing A/R is reduced by up to 50%. 

The added advantage is that A/R teams are freed up to provide high-touch service to VIP customers. There’s no question that automation is a better strategy for long-tail customers: Companies that automate A/R spend 6% of their time prioritizing their activities, 6% of their time gathering information for collections calls, and 62% of their time communicating with customers about payment.

CHALLENGE #2: OUTDATED E-COMMERCE EXPERIENCES

eCommerce image

Slow, outdated purchase interactions aren’t a reason for your customers to stick with you. On the other hand, a simple, convenient buying experience that sets you apart in the market has big returns:

  • 5% less in customer churn = 25% to 125% increased profitability 
  • Repeat customers spend 33% more than new customers

New Strategy: Create a better buying experience and hit e-commerce growth goals with intelligent credit and A/R automation.

The buyer experience is streamlined with a fast, automated, fully financed credit program built right into checkout. Buyers have access to a secure login where they can view invoices, set up purchasing teams, and access multiple payment options. The convenience and ease of your buying experience leads to larger and more frequent transactions by customers, driving growth for your organization.

CHALLENGE #3: INTERNATIONAL PAYMENTS ARE A STRUGGLE

It’s a classic business challenge: Strong markets exist for your company outside of the U.S., but back-end processing is a barrier.

New Strategy: Choose an A/R automation partner with a global lending network.

Apruve is the only provider that combines A/R automation with financed credit programs. We enable A/R teams around the world to easily extend credit, be paid by international customers, and automate invoice financing. That means companies can scale for new markets with less risk and without adding A/R staff. With our global network, Apruve is automating international payments in more than 40 countries and growing.  

Read how one Fortune 500 company is managing credit and payments with 200,000 multi-currency buyers in dozens of countries with Apruve. This manufacturer effectively expanded its global direct sales channels without adding any back-office processes. 

CHALLENGE #4: MARKETPLACES NEED TO MONETIZE 

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There’s plenty of business opportunity globally for wholesale marketplaces, but only if they can efficiently extend net terms and credit lines to buyers.

New Strategy: Automate and customize A/R for your marketplace.

An intelligent platform like Apruve enables marketplaces to drive maximum adoption for both sellers and buyers. Sellers are paid at the time of shipment, optimizing their flow of funds. Buyers, now with adequate credit lines, can manage their account and pay invoices online. The marketplace benefits from a new stream of revenue, with transparent reporting and program management. When marketplaces choose Apruve, they also get a single partner with a worldwide network of lenders.  

If it’s time to rethink A/R and credit in your organization, walk through a demo with Apruve. Our unique approach to A/R could change your company’s growth trajectory in 2022.

In our next blog, we’ll dive deeper into one-day DSO and cost efficiencies with intelligent A/R automation. Apruve customers save 30%-50% on fixed A/R costs and realize up to 200% ROI within their first year. 

Topics: Finance


ABOUT APRUVE

Apruve enables large enterprises to automate long-tail credit and A/R so you can stop spending 80% of your time and resources on 20% of your revenue. We partner with each of our customers to solve their unique credit, payment, and accounts receivable challenges and build the right credit solutions for your markets, customers, and goals. 

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