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FACILITATE INVOICE RECOVERY BY INSERTING A QR CODE

tcm belgium news qr codeIn about 95% of cases, your customer pays you on time. All you need to do is to send them the invoice. But technical measures, like inserting a QR code on your invoice, can improve this score. How can you facilitate invoice recovery?

 

Why so much effort?

In these times of crisis, we often hear that we could be more flexible vis-à-vis debtors. In fact, we are always on the lookout for possible solutions, whilst we also know that the “domino effect” is terribly destructive to the economy (‘I can’t pay because I wasn’t paid’). This is what governments in many countries understand and why they support households and businesses in these difficult times. A business only survives if it continues to be paid. And its workers and their families depend on it.

As we have seen with the oil crisis of recent weeks, the economy is operating on a marginal basis: excess production leads to the collapse of the price of 100% of production. Likewise, in the past, a shortage of a few percent of production has created substantial price increases. Small imbalances create big effects.

This marginal reasoning also applies to companies’ cash. A minimum level of availability is required to cover costs. This minimum level varies from company to company. It can be expressed as a fraction of bearable defaults (for example, for some companies, 10% or even more unpaid debts can be borne without jeopardizing the viability of the business in the short term). But there is always a level of delinquency that a business cannot afford.

Hence, prosperity and even survival is played out on 20% or sometimes 5% of outstanding payments. Therefore 1% more or 1% less payment default can have a decisive impact.

 

How to increase the cash flow?

The relevance of the following headings depends on your sector of activity and your business model. In general:

  • Check who you are selling to: set up credit policies and lines of credit.
  • Establish clear and traceable agreements: by general conditions or contracts; signed purchase orders, etc.
  • Spread clear and positive messages: start with your documents (purchase orders, invoices, reminders) and other e-mails, text messages and telephone conversations.
  • Encourage ease of use: facilitate contact and payment.

For more details: credit management guide.

 

Payment by QR code

Belgium has been a pioneer in terms of electronic payment methods. It remains so compared to some of our big neighbours. Cheques have disappeared and bank transfer forms printed at the bottom of invoices seems to be in the past. How many of us still fill out this kind of form?

According to Payconic (Bancontact), 70% of us have at least one payment application on our smartphone today (it was “only” 55% in 2017). Put a QR code (Quick Response code) on paper invoices and reminders and, for an electronic message, a payment link. This will promote quick payment.

 

Administrative benefits

TCM works with QR codes on letters and payment links on emails and text messages.

We also prefer payment by QR code also because the payment reference is always correct and there is no need to reallocate payments. In addition, since the QR code (or the payment link) is deactivated when the payment is made, so there is no longer a double payment (which led to the time-consuming management of refunds).

 

Conclusion

Make your customers’ lives easier, they’ll give it back! It also makes your life easier.

 

More information: contact us.

FACILITATE INVOICE RECOVERY BY INSERTING A QR CODE

tcm belgium news qr codeIn about 95% of cases, your customer pays you on time. All you need to do is to send them the invoice. But technical measures, like inserting a QR code on your invoice, can improve this score. How can you facilitate invoice recovery?

 

Why so much effort?

In these times of crisis, we often hear that we could be more flexible vis-à-vis debtors. In fact, we are always on the lookout for possible solutions, whilst we also know that the “domino effect” is terribly destructive to the economy (‘I can’t pay because I wasn’t paid’). This is what governments in many countries understand and why they support households and businesses in these difficult times. A business only survives if it continues to be paid. And its workers and their families depend on it.

As we have seen with the oil crisis of recent weeks, the economy is operating on a marginal basis: excess production leads to the collapse of the price of 100% of production. Likewise, in the past, a shortage of a few percent of production has created substantial price increases. Small imbalances create big effects.

This marginal reasoning also applies to companies’ cash. A minimum level of availability is required to cover costs. This minimum level varies from company to company. It can be expressed as a fraction of bearable defaults (for example, for some companies, 10% or even more unpaid debts can be borne without jeopardizing the viability of the business in the short term). But there is always a level of delinquency that a business cannot afford.

Hence, prosperity and even survival is played out on 20% or sometimes 5% of outstanding payments. Therefore 1% more or 1% less payment default can have a decisive impact.

 

How to increase the cash flow?

The relevance of the following headings depends on your sector of activity and your business model. In general:

  • Check who you are selling to: set up credit policies and lines of credit.
  • Establish clear and traceable agreements: by general conditions or contracts; signed purchase orders, etc.
  • Spread clear and positive messages: start with your documents (purchase orders, invoices, reminders) and other e-mails, text messages and telephone conversations.
  • Encourage ease of use: facilitate contact and payment.

For more details: credit management guide.

 

Payment by QR code

Belgium has been a pioneer in terms of electronic payment methods. It remains so compared to some of our big neighbours. Cheques have disappeared and bank transfer forms printed at the bottom of invoices seems to be in the past. How many of us still fill out this kind of form?

According to Payconic (Bancontact), 70% of us have at least one payment application on our smartphone today (it was “only” 55% in 2017). Put a QR code (Quick Response code) on paper invoices and reminders and, for an electronic message, a payment link. This will promote quick payment.

 

Administrative benefits

TCM works with QR codes on letters and payment links on emails and text messages.

We also prefer payment by QR code also because the payment reference is always correct and there is no need to reallocate payments. In addition, since the QR code (or the payment link) is deactivated when the payment is made, so there is no longer a double payment (which led to the time-consuming management of refunds).

 

Conclusion

Make your customers’ lives easier, they’ll give it back! It also makes your life easier.

 

More information: contact us.

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