Knowledge

Invoices with an iDEAL link are paid 9 days faster

Sander Kamstra April 27, 2020

Late paid invoices heavily impact cash flow. Strategic and automated debtor management is an efficient way to handle this. It is accessible to every organisation, including SMEs. In fact, automated management results in 30% faster payments while requiring at least 50% less time. Read here how you can implement a smart debtor management strategy for your organisation.

Strategic debtor management is also possible for you (and in less time)

Strategic debtor management also provides SMEs with time savings, faster payments, and more consistent management. However, it is more than just sending an invoice and following up. It means focusing on management, tackling it rigorously, rather than doing it alongside regular tasks. This focus, combined with the use of smart technology, results in more time and better payments.

The main benefits of strategic debtor management for SMEs

30% faster payment through improved payment behaviour

With smart debtor management, you improve your customers' payment behaviour. You achieve this by staying on top of things, forming an active policy, and adhering to it. Show customers that you consider paying invoices important. You can easily track invoices through technology, payment reminders are sent automatically, and the communication surrounding them is stored immediately.
Een betere cashflow door snellere betalingen

Faster payments lead to better cash flow. As a person responsible for accounts receivable management, this means you have less need for (pre)financing, whether it's invoice financing or a business loan. Better cash flow also means you have more room for investments or to financially enable growth.
The customer relationship first

If an invoice remains unpaid, it is often followed by an amicable collection process. This is often done through an (expensive) collection agency that does everything possible to secure the payment, even if it harms the customer relationship. These impersonal collection processes are no longer necessary with strategic debtor management. With a good policy and appropriate software, you can ensure proper file management and initiate a collection process yourself.

How to Approach Strategic Debtor Management as an SME?

This approach mainly involves: no grand plans, but policies with concrete actions.

Ensure a More Efficient Administration

Send digital invoices or even e-invoices. An efficient administration records matters structurally, preventing errors and misunderstandings.

Appoint a Responsible Person in the Organisation

With smart technology for debtor management, you spend at least 50% less time on management. However, management does require focus. Appoint a responsible person and give them time to carry out the tasks.

Consistently Record Steps in the Invoice Process:

What is the payment term?
When do you send a reminder, and when subsequent reminders?
When do you stop or pause the reminder process?
When is the final reminder?
What do you want to do with the collection process?
When do you offer a payment arrangement?

Use Technology to Automate Your Debtor Management

It takes work off your hands, allowing those responsible for debtor management to do more. Such as giving attention to customers who need it. Or to identify payment problems and see where you can improve the process and communication. With automated debtor management, you can offer multiple payment options and engage in dialogue with your customer per invoice. You remain friendly and personal in contact with your debtors, with all the benefits that entails.