According to a recent poll by Forbes, 53% of respondents voted that mail delivery has gotten “much”, or a “bit worse” over recent months. This is troubling when you consider that livelihoods depend on being able to receive mail on time. Many businesses operate with traditional invoicing methods, using paper invoices and checks. In fact, 90% of B2B payments are made using paper checks.
Businesses whose operations rely on traditional mail have been completely altered, finding themselves having to resort to expensive measures to have their mail arrive on time. Where regular postage would be used to send a check or a product, many businesses are now paying for express mail and hoping that it arrives on schedule.
With most businesses still using paper mail for the transmission of checks and invoices, the national mail slow down has heavily impacted the way B2B payments are carried out. This is concerning since many business’ operations solely depend on USPS, with other competing courier companies offering similar services at more expensive prices. Add to that the recent common theme now observed among business owners, the missing of paper mail containing checks.
Unfortunately, the pandemic has caused many businesses to struggle financially, making it more important than ever to get paid on time and ensure your company has proper cash flow. 82% of businesses fail due to cash flow issues. The chances of becoming part of this statistic increase when your business is not being paid on time, reducing your working capital. Savvy business owners are rapidly turning towards electronic transactions.
USPS Mailing Delays
In the past few months, there has been a significant slow down with the United States Postal Service. It has been reported that mail has taken more than 13 days to reach its final destination. If your invoice is net 30, and it takes two weeks for the invoice to reach your customer, and another two weeks for the check to arrive, it is impossible to be paid on time.
Is this frustrating?
Of course! Many companies are paid immediately using electronic transactions. Since the onset of the pandemic, traditional supply lines have been altered and many businesses quickly pivoted to function fully remote, including the way payments were conducted. Those that did not adapt have paid a heavy price.
Many businesses found their operations disrupted with the inability to receive payments via paper mail, especially those that were forced to function remotely. Consider all the invoices and checks which were either delayed or just sitting in a businesses’ mailbox, that could’ve made all the difference to keep that business afloat.
Electronic invoicing is an automatic process that removes payment delays, payment friction, and doesn’t rely on unpredictable carrier methods. Once payment is made electronically, funds are available almost immediately, without any delays. E-invoicing not only provides a more efficient payment system but with electronic invoicing, your team can also manage payments, expenses, and customer data remotely and collaboratively.
Electronic invoicing is not only a more superior system for invoice processing than paper mail, but e-invoicing automation software is the irrefutable future of payment technology. Automation takes the functions of electronic invoicing and combines it with technology to set your accounts receivable on autopilot. Invoice automation enables you to synchronize your invoicing software to solutions that manage your entire accounts receivable operation from bill presentment to payment and reconciliation. A prime example of such a solution is Biller Genie.
Biller Genie is an award-winning, cloud-based accounts receivable automation and e-invoicing solution that automates accounts receivable from bill presentment, to follow up, collection, and reconciliation – without changing your current process. The Genie seamlessly integrates with your preferred accounting software, and you can keep your existing payment processor. With its combination of advanced features, Biller Genie automates your entire accounts receivable process, giving you back precious time to focus on growing your business. The Genie gets subscribers paid up to 15 days faster, reduces overdue balances by 40%, and reduces your administrative work by 10-20 hours per week. We wish to take away the headaches involved in accounts receivable and improve your cash flow. Click here to learn more.