The Perceptions Study Deep Dive is now available and it’s chock full of compelling information about how customer payment is influenced by a supplier’s industry, revenue and invoice volume. This entry focuses on the third and fourth takeaways. See the first two takeaways here.
Takeaway #3: Invoice submission method directly impacts the likelihood of whether a company is open to early payment in exchange for a small discount.
The more electronic the invoice submission method becomes, the more likely companies are to consider accepting early payment directly from their customer or from a third-party provider.
For companies submitting paper invoices, 35% are open to accepting early payment from customers while 25% are open to accepting it from third-party providers.
When using third-party e-Invoicing, 45% of companies are open to accepting early payment from customers and 37% are open to accepting it from third-party providers.
Those most receptive to early payment, from customers or third-party providers, are companies that use ERP systems to submit invoices. A majority of companies (67%) are open to accepting early payment from customers when they submit invoices this way and 64% are open to accepting early payment from third parties when using this method to submit invoices.
Takeaway #4: The greater a company’s revenue, the more likely the company is to accept paper checks at an off-site lockbox.
Receipt of paper checks at off-site lockboxes are very rare for companies with less than $5 million in revenue but are very common for larger companies with more than $1 billion in revenue.
For companies with less than $5 million in annual revenue, only 3% accept paper checks at company-owed, off-site lockboxes while only 6% accept checks at third-party, off-site lockboxes.
For companies with revenue greater than $1 billion, 34% accept paper checks at company-owned, off-site lockboxes and 39% accept them at third-party, off-site lockboxes.
See these and other findings in the 2015-16 Perceptions Deep Dive: A definitive benchmarking guide for payment and remittance published this week.