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ABN AMRO Debuts Invoice Help For Corporates

ABN AMRO Debuts Invoice Help For Corporates

May 18, 2021 at 01:27AM
by PYMNTS

ABN AMRO will be making services for business owners to more efficiently deal with invoices, according to a press release on Monday (May 17)

The release said if an invoice is selected, 90 percent of its amount will be credited toward the business’s account within one day of approval.

The other 10 percent will go toward that same payment when the debtor pays the invoice.

The report says the business owner will pay around 2.4 percent per invoice. The rest of the debt collection process is taken care of for them, the release said, with a maximum fee of 4 percent.

The new service promises to be flexible and will help companies that don’t always have access to factoring solutions or loans that work with cash flow management.

The release noted that many businesses have not been able to pay invoices on time, particularly since the pandemic started. Atradius, the credit insurer, said in November of 2020 that 56 percent of businesses have been paying invoices late. That’s compared to 32 percent from before the pandemic. On average, the report said the time it took to pay invoices was 25 days longer then.

According to the release, as of last month, 51 percent of small businesses were not paying their bills on time.

“The advantage of the Snel Betaald solution is that businesses can decide on a per-invoice basis and at a transparent fee whether they need advance financing,” said Patrick Pfaff, who works on ABN AMRO’s Commercial Banking Management Team. “This puts them firmly in the driver’s seat in terms of their cashflow position.”

In terms of faster B2B payments, the arrival of new, quicker payment methods have become popular. At the same time, the demand for analytics and demand-driven insights has increased.

Accounts receivable workflows have traditionally been limited in what they can offer for finance leaders looking for insights.

Gaviti Founder and CEO Yan Lazarev said the key to doing that is to pay on time.