Payfacs Keep DSO on the Down Low
Like every business owner, you want everything about your company to be outstanding, except of course, your receivables. Keeping a watchful eye on Days Sales Outstanding (DSO) is a good way to measure cashflow and see how fast your customers are paying.
If your DSO and Accounts Receivable (AR) are beginning to look like a convention of Past Due Collections and Write-Offs, here are some things to consider:
Recent changes in credit terms:
Have you recently offered extended terms to your customers, as many companies are doing, to alleviate hardships during COVID-19? These policies may affect your cashflow in the short term but can also help build rapport and customer longevity.
A high DSO indicates your company is taking longer to collect remittances. If left untreated, this can impact more than just your bottom line. What approach are you taking with late-paying customers and how are your credit managers working with them to structure achievable repayment plans?
When was the last time you surveyed customers about their satisfaction level? Simple surveys combined with daily sales data can shed light on the customer experience. These measurable insights can help identify concerns and possible disconnects between your customers and service departments.
How do you assess new and existing customer creditworthiness? And as you monitor their credit history, income, debt load and financial obligations, how quickly can you detect anomalies or changes in their credit profiles?
Get (DSO) down with VyaPay!
At VyaPay, our purpose is to help you grow and scale. We understand that a high DSO’s residual impacts can flow downstream, potentially affecting partner, vendor and employee relationships. As a leading payment facilitator, we work for our B2B partners, end to end, across the commerce value chain. Helping them lower DSO is a small part of what we do.
Here are some ways our payfac model can help improve efficiencies, reduce AR outstanding and take your business to the next level:
Identify the cause:
The transparent payfac model shows electronic transactions and accounting functions at a glance, which can help you get to the root of a problem. Fluctuations in DSO are normal for most businesses. Payfacs provide enhanced reporting that can help identify seasonal AR patterns and other important cashflow trends.
Simplify, integrate accounting:
Payfacs simplify cashflow management by seamlessly integrating payments processing with your accounting software. This provides a real-time, single-access view of commerce and accounting, enabling you to quickly react to issues as they arise. And with embedded invoice links in your reminder emails and tokenized recurring billing, you can transform Net 30 into Pay Now.
Automate day-to-day tasks:
Payfacs can automate routine tasks such as rebilling, collections and chargeback management. Eliminating these time-consuming routines gives you more time to focus on keeping customers, partners and vendors happy, engaged and coming back.
Make real-time decisions:
Payfacs leverage machine learning, artificial intelligence and other advanced technologies to improve risk management and fraud prevention. These capabilities help business owners maintain the highest levels of payment card security and compliance and provide instant enrollment and advanced fraud protection to customers and channel partners.
Go global, omnichannel:
Payfacs understand that today’s consumers want to transact from anywhere on the planet from the privacy of their homes and connected devices while using their preferred payment methods and local currencies. VyaPay supports cross-border payments and seamlessly integrates with Shopify, WooCommerce and other leading shopping carts, to provide frictionless checkouts and improve the user experience for partners and customers worldwide.
Discover the VyaPay difference
VyaPay’s premier payfac solution combines convenience, security and data-driven decisioning. We constantly update our technology suite to give partners leading-edge graphical reporting and real-time analytics. VyaShield, our chargeback automation solution, delivers bottom line savings by reducing and eliminating chargebacks.
VyaPay processes a range of in-store and Card Not Present electronic payments, including major card brands, ACH, eChecks, 3D Secure, 3DSv2 and cross-border payment schemes. We partner with merchant acquirers, ERPs, CRMs, ISVs and VARs, to save them time and money and help businesses of all sizes and industries transform the B2B experience.
VyaPay will help your business become outstanding in every way except your AR. If customers are happy, they will be happy to pay. High satisfaction. Low DSO. That’s the VyaPay difference.