Operational efficiency isn’t the only obsession with accounts payable today. As top performers streamline invoice processing, the next step is to help their finance organizations manage cash better by combining early payment discounts with a payment term extension program.
In this session, you will learn how you can mine profits in accounts payable from early payment discounts while supporting treasury’s goal to improve working capital. The ability to maintain or extend days payable outstanding (DPO) and expand the discount pool is one of the great, untapped opportunities in all of corporate finance.
- Compressing the invoice processing cycle has a dramatic impact on how organizations manage their cash
- Dynamic discounting presents new ways to capture discounts, through real-time collaboration and sliding rate scales up to the net invoice term
- Payment terms rationalization and extension in conjunction with an early payment discount program deliver cost savings and increased returns on cash while also allowing you to maintain or extend your DPO
Presentation delivered at ProformaTECH 2014 - http://www.proformatech.com
Track: Operational Advantage | Session: 2
Speaker: David Bennett, Senior Manager, Working Capital Consulting, Ariba