The UK's payment culture reveals a troubling trend: according to the government’s payment practice reports, a quarter of invoices are not paid within the agreed terms. Even more startling, among the five biggest retailers, a quarter of invoices take 61 days or more to be settled. This lag in payment practices not only strains supplier relationships but also highlights systemic inefficiencies in the accounts payable process.
The Price of Delayed Invoice Payments
For purchasing companies, the consequences of such delays can be financially burdensome. Not only do they lose out on early payment discounts, which are essential for capital management and cost savings, but they also risk incurring late payment fees and damaging vital supplier relationships. These strained relationships can lead to less favourable payment terms in the future, impacting the company's ability to manage its finances effectively.
How to Accelerate Your Invoice Payments with Kloo
Autonomous Invoice Upload: Kloo’s autonomous invoice upload feature eliminates the need for manual data entry, allowing invoices to be processed swiftly and accurately, mitigating the risk of payment delays.
AI-Powered Invoice Matching: Leveraging AI for context-based invoice matching ensures high accuracy and reduces the time taken to reconcile invoices, even when dealing with complex payment terms or supplier information discrepancies.
User-Friendly Payment Approvals: With Kloo, payment approvals are made user-friendly through off-platform email approvals integration. This means approvers can quickly approve purchase orders directly via email, significantly reducing the approval processing time.
Key Takeaways:
- Late payments disrupt cash flow, erode supplier trust, and lead to lost financial opportunities.
- By embracing autonomous invoice upload, AI-powered invoice matching, and user-friendly payment approvals, companies can foster a reliable, efficient payment system that benefits all parties involved.
- Implementing Kloo's AP solutions can significantly reduce approval processing time, ensuring timely payments and bolstering supplier relationships for long-term business success.
