Integrated Receivables: Why the Fuss?

By: Jon Gage

Ineffective cash application processes make it difficult for businesses to purchase raw materials, manufacture or deliver goods, fund sales and marketing initiatives, or manage working capital.

Yet most businesses rely on manual or semi-automated processes for cash application.  As a result, less than half of all businesses can post the majority of their receivables straight-through, without human operator intervention, according to the Institute of Finance and Management (IOFM).

Making matters worse, new payment channels and types are increasing the complexity of cash application and making it even harder for businesses to understand their cash position.

This is why nearly half of all businesses surveyed by Aite Group are dissatisfied with their receivables and payments processes.

It is for these reasons that more businesses – and the bank lockbox providers that serve them – are automating their cash application process with integrated receivables solutions.

Automate with Integrated Receivables

Integrated receivables solutions: aggregate all paper and electronic transactions (checks, lockbox, cards, ACH, wire transfer, EIPP/EBPP, web, etc.), automate exceptions workflows, streamline returns processing, provide seamless extracts and exports, reconcile payments with remittances and match receivables with invoices, automate posting to the biller’s downstream systems, consolidate payments and receivables reporting, and provide trend analysis across payment types.

Billers benefit from less manual data entry, fewer losses from unauthorized deductions, accelerated Days Sales Outstanding, enhanced cash flow visibility, and stronger customer relationships.  Importantly, by providing a uniform data stream, integrated receivables speeds cash application.

Banks benefit from:

  • Reduced operational costs through streamlined exceptions and returns processing
  • The ability to meet growing customer demand for receivables solutions
  • Stronger customer relationships
  • New revenue streams
  • More value from their lockbox franchise

Most large corporations are adopting or planning to adopt an integrated receivables platform within the next two years, Aite Group reports.  Of the top 50 U.S. banks, between one-fourth and one-third either already implemented such a solution or are in the process of implementing one.

Want to learn more about how an integrated receivables platform can benefit your organization?  Contact Sales at to arrange an online meeting.

©2018 Creditron | All Rights Reserved