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To use the new service, a customer connects ZenCash to their current invoicing system, and sets up what's called an "Action Timeline".
The financial projections presented here are based on the assumption that suppliers will continue their current invoicing programs with University Cycle Works.
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A payment may not show on the current invoice due to the timing of receiving and posting payments.
The cost of money for the client -- akin to the interest rate charged on a bank loan -- is the discount, which can vary from 2 to 4percentt on current invoices due within 30 days, to 15percentt or more if payments are overdue or are not payable for several months, or there is much doubt about the customers' ability to pay.
For instance, almost half of PREPA's 2014 accounts receivables are from government clients, and some of PREPA's largest public customers are not even making payments on current invoices.
For example, if the current invoice total is $100,000 and the overall invoice total is $140,000, then current invoices account for (100,000 / 140,000) or 71 percent of all accounts.
For example, if there are $100,000 worth of current invoices and the balance paid is $95,000, then 95 percent of current invoices have been paid.
Begin by sorting all of your current invoices (both paid and unpaid) by date originated.
For example, If the current invoices represent 71 percent of all invoices and they are 95 percent paid, the number arrived at is (.71 *.95) or 0.67.
Ask your order entry specialist about the limitations of your current system; does invoicing take too long resulting in decreased productivity?
Europe's current e-invoicing adoption rate of 24percentt is expected to rise to 95percentt by 2024 and accrue savings of approximately 64.5 billion euros ($72 billion) per year for businesses.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com