At Apxium, we spend a lot of time thinking about debtor days. Not because they are a particularly fun subject, but because they are critical to a business's success. In fact, decreasing debtor days for our users was one of our primary motivators when we first conceived Apxium. That is why our receivables and payments processing solution helps businesses of all sizes reduce debtor days, delivering a permanent cash injection to the business.
Why are Debtor Days Important?
Management of debtor days is crucial for the ongoing solvency of your business. You do the work or deliver the service while the expenses of your business continue to rack up. If you don’t collect your cash for the products sold or services delivered as fast as you are spending it, clearly, in the absence of increased debt or equity funding, the business can no longer continue to operate. Clearly, this is an extreme example. Having said that, the shorter the debtor days for your business, the better.
With shorter debtor days come increased cash flow, faster growth, and more accurate and secure future planning.
Unfortunately, most businesses have much longer debtor days than they need to.
A recent study by Fintech financier The Invoice Market states that 46% of small businesses have to contact their customers an average of three times to get paid, wasting hours of your employees' time and stretching out your debtor days. The impact goes beyond just reduced cash flow, though. The Invoice Market estimates that the impact of these debtor days comes in at the tune of 500,000 jobs that can't be created because small and medium sized businesses just aren't working with the capital they're owed.
Why are debtor days increasing? One factor has to do with older debt collection methods like printing and mailing invoices, which stretch out the amount of time between your billing and payment. Add in some businesses not accepting credit cards and bank transfers and the time it takes for posted payments to arrive and get processed, and you can understand why debtor days can amount to weeks. Even after the payment is received, there’s the manual processing of entries , dealing with unreconciled or indeed over payments.
How Does Apxium Help Decrease Debtor Days?
Apxium, the most powerful and integrated automated accounts receivable software on the market, helps businesses of all types decrease debtor days. With automated invoicing communication, follow up, payment reconciliations, multiple payment methods and bookkeeping, Apxium decreases debtor days by targeting the chokepoints in your accounts receivable process.
Automated Invoice Sending
With Apxium, you will never again have to print or post an invoice. Instead, Apxium works with every major accounting platform to seamlessly detect and send your finalised invoices. With the ability to auto-email these invoices to your entire client base, you drastically reduce not only the work required to send your invoices but the time, too. Imagine, instead of waiting three days for your invoice to arrive in the post, your clients could be reviewing their debts within 24 hours. All you have to do is approve the invoice in your underlying accounting system.
Automated Invoice Tracking
With Apxium, you will never again spend time identifying your outstanding debtors. Instead, Apxium categorises your invoices with a simple traffic light system to instantly identify current and overdue invoices. You can filter the debtors information in multiple ways to enable you to understand your debtors performance across the business at a glance.
Automated Invoice Follow Up
Apxium offers companies simple invoice follow up schemes via email and optional SMS text message. You can create automated follow-up messages to your customers to notify of upcoming payment due dates and follow up with overdue invoices. These reminders will be sent only to your customers within your specified timeframe and include a simple one-click payment link so they can settle their account directly.
Secure, Online Payments
Every Apxium payment reminder and communication is branded in your business’s name and includes a link to your client's own payment portal. There, your clients will be able to settle their outstanding invoices using a credit card or bank debit. This secure payment gateway makes it simple for your customers to settle invoices and make payments in the moment. Moreover, payments will be directly settled to your bank account, drastically cutting down the time it takes to receive funds as compared to posted cheques.
With Apxium's secure, automated accounts receivable solutions, you will find that your entire invoicing and payment process is simplified.
The secure, online payment gateway allows your clients to take care of their invoices the moment they are received, drastically cutting down the time it takes to get paid. Moreover, the reminders and automated follow-up ensure that clients stay aware of their obligations and save your account managers from making endless calls.
Imagine what your business could do if all your outstanding and past due invoices were paid off. Reinvesting that capital back into your business, paying down debt, or proving your worthiness as a lendee all become possible when your business starts returning what it should.
You can discover more about Apxium's features here, or learn more about payment gateways. You may also be interested in learning what our dashboards look like and what reporting features are offered. If you would like to speak directly with one of our team, you can sign up for a free consultation to get your questions answered here.