Days sales outstanding (DSO) is a measure of the average number of days it takes for a company to collect payment on its invoices. A lower DSO indicates that the company is able to collect payments more quickly, which can be beneficial for cash flow.
To reduce DSO, you can try implementing the following strategies:
- Invoice promptly: Make sure to issue invoices as soon as orders are shipped or services are rendered, as this will start the payment process sooner.
- Follow up on overdue invoices: Don't wait for customers to pay on their own. Follow up with them to ensure that payment is received in a timely manner.
- Offer incentives for early payment: Consider offering discounts or other incentives to encourage customers to pay their invoices promptly.
- Streamline the payment process: Make it easy for customers to pay by offering multiple payment options and providing clear instructions on how to make payment.
- Improve credit and collection policies: Review and update your credit and collection policies to ensure that they are effective in promoting timely payment.
By implementing these strategies, you can help reduce DSO and improve your company's cash flow.
Qube Account Receivables Finance Added Value
PRI® inside Platform
The fully automated solution for account receivables (or AR) financing by PRI® inside offers:
- Daily (re)purchase of invoices
- Daily portfolio analysis and portfolio review
- Daily notification of purchased receivables
- Daily settlement of credit-notes and uncollectable invoices
- Daily liquidity calculations
- Full ‘track and trace’ solution, all required steps are logged and documented
- Fully automated data-exchange after one-off implementation of data-exchange protocol
- Daily funding and settlement towards participating companies & institutions
- Fully integrated risk, operational and legal framework
Set-up for daily settlement routine is defined on automated interface between client’s financial and operational systems and Qube’s PRI® inside. Interface will be implemented and supported by Qube Servicing.
After go-live Qube’s clients will have access to all daily settlement reports with automated instructions for payments if required, resulting in a very limited work-load for clients on an ongoing basis.
In addition, PRI® CrediSoft is a proprietary receivables credit & collection add-on application supporting credit management processes serviced by Qube Servicing. The application manages and integrates collection workflows and tasks and is fully integrated with PRI® inside.
PRI® inside has been developed based on the in-depth experience with receivables finance with the objective to have a fully front-to-backend automated receivables finance platform based on historic and actual data which to provide full insight & transparency which will be evidenced by demo on request.