LONDON, UNITED KINGDOM--(Marketwired - Jan. 19, 2017) - While companies have quickly embraced digital technology for their interactions with customers, many have not yet taken the same approach with their invoicing systems, despite the obvious benefits. Digitising these back-end processes could go a long way towards reducing the astounding 40 percent of invoices that are paid late in Europe.
European CEO had the opportunity to speak to Richard Hurwitz, CEO of the business transaction experts Tungsten Network, about how removing the human element from invoicing systems can speed up process time and reduce mistakes.
"Removing paper from the payables process is really a no-brainer," explained Hurwitz. "Those benefits are highly demonstrable - in fact, quantifiable." One client of Tungsten's saw invoice processing time shrink from 21 days to four and a half, and errors drop from 17-18 percent to 0.25 percent.
Tungsten Network connects corporations across continents to all of their entities, and then to their supply chain. Hurwitz said the widespread adoption of paperless invoicing could be a net positive for the world's productivity levels. "The problem is that too many businesses are relying on manual, paper-based AP processes. Yet we live in a world where digital technologies are revolutionising the way that businesses operate. Too often, those technologies are being applied to the front office, not to the back office."
Automating antiquated AP systems is just one of the ways in which Tungsten Network combats late payments and stagnant working capital. Invoice financing has grown as a source of alternative income for many SMEs, with Tungsten Network also seeing significant growth in this field. Hurwitz said those that try using invoice financing through the Tungsten Network keep using the service. "In fact they take down about 80 percent of all of their invoices that are available for financing. They use it over and over again. We continue to see our outstanding grow month-to-month."
And why do these SMEs keep using the service? Hurwitz points to the ease-of-use and transparency. "No documentation, no reps and warranties, no recourse. And 100 percent advance rates. That's not available to them anywhere else. This is enhancing the velocity at which working capital gets back into our economies, and that's good for global growth."
Working with some of the world's most complex organisations, Tungsten has established itself as a leader in the field of invoice automation. The full video interview with Hurwitz can be viewed online at the European CEO website by visiting:
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