As any business owner knows, particularly those in the SME market, securing credit from a bank is nigh on impossible at the moment. Concerns about capitalisation and liquidity are causing banks to keep hold of cash, making loans to businesses extremely difficult, if not impossible, to obtain. As a result wider economic growth is stalled as businesses cannot afford to invest in order to expand. Consequently, companies are being forced to identify efficiencies and costs savings which can potentially free up cash for re-investment, undertaking detailed analysis of financial routines in way that during the “good times” may have been neglected.
These internal reviews are forcing businesses to look ever harder at their own cash flow and the way it is managed. Many have already discovered that the process streamlining available through e-Invoicing has significant benefits, particularly when extended to the wider financial supply chain. The automation of various accounting functions reduces workload whilst maintaining the controls required for low-level financial analysis.
The European Union’s continued promotion of e-Invoicing coupled with similar requirements of many national governments are steadily moving businesses towards electronic invoice presentation and payment anyway, but the global financial instability could be accelerating uptake too. The political drive to increase e-Invoicing should see the concept reach critical mass with SMEs in the next few years and as uptake climbs, so too should use of these platforms in the B2B markets as well as the B2G.
So at a time where literally every penny counts, business decision makers should be following the lead set by the European Union and investigating the potential benefits and savings available through business process automation and outsourcing. e-Invoicing could be one of the ways to ensure business survival and growth despite the apparent obstructions put up banks.