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The ROI of speed: How integrated digital solutions can expedite the payment cycle
Published: June, 21st 2024
![The ROI of speed: How integrated digital solutions can expedite the payment cycle](/wp-content/uploads/2024/06/AICM-May-2024-Adrian-Floate.jpg)
Bringing in new business, extending credit to new customers, and delivering exceptional products and services all contribute to driving revenue growth. However, one often overlooked element to a business’s longevity is the payment cycle itself. Without visibility over how and when you’ll get paid, it’s difficult to meet a company’s ongoing financial obligations and plan for investments in growth.
Despite rising interest rates and input costs, trade credit applications have remained steady in Australia, only falling marginally by 0.4 per cent in the quarter ending 31 December 2023. This fall may have been driven in part by the rise of payment options available and the ability for companies to make payments with credit cards which extend payment terms, especially with bonus of interest-free periods offered by the card provider.
Another contributing factor to the plateau in trade credit applications could be the trend that began to emerge in 2022. As inflation and interest rates began to rise, over half (65 per cent) of credit managers said they would tighten collections.