Upfront: E-Payment Improves Working Capital

Electronic invoice presentment and payment (EIPP) systems' improvements to working capital processes are exceeding expectations, according to a survey sponsored by Citigroup Global Transaction Services.

Among companies that have implemented EIPP, 37 percent said that process efficiency rose more than they projected. Thirty-two percent have seen a positive impact on customer service levels, and 35 percent have experienced reductions in days sales outstanding. Respondents also said that streamlining accounts payable and receivable was the key driver in their decision to adopt these systems.

Source: McKinsey Global Institute