Integrated
Receivables

What is Integrated Receivables?

Proliferation of payment channels. Declining B2B check payments. Industry gravitation toward electronic payments such as ACH. These industry trends and more are the driving forces behind today’s receivables management challenges. The difficulty of receivables processing cuts across all companies, from small commercial to the largest multi-billion enterprise.

Integrated Receivables (IR) makes it possible for a corporation to receive payments of any type (paper or electronic), from any source and process them efficiently. IR solutions eliminate the day-to-day roadblocks that make it near-impossible to improve access to working capital and better manage liquidity. The solution automates payment processing to increase straight-through-processing (STP) across all payment channels and accelerate the application of cash to the balance sheet.

Integrated Receivables solutions turn receivables information into a source of valuable business insights that can be customized for everyone from a CFO to an operations supervisor. These benefits can be achieved with Deluxe’s flexible deployment options that encompass in-house, hosted, or BPO environments, allowing for a scalable solution that can process small volumes to millions of transactions per day.

How Does Integrated Receivables Work?

Integrated Receivables solutions eliminate repetitive, manual workflows, automatically apply business rules, and solve the key pain points in posting paper and electronic payments. The end result is enhanced visibility into all incoming payment information in a single location. The technology normalizes data across all payment types and can provide comprehensive reporting and analysis. The solution’s robust technology helps organizations achieve fully automated payment processing from start to finish.

Remote Deposit Capture & Aggregation


Capture and aggregate payments and documentation including mobile devices, in-house or third party lockbox, ACH, Wire, EDI, credit card and more. Digitize customer correspondence and supporting documentation and combine information from all sources, paper and electronic, into one view that spans the organization.

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Remittance Processing & Intelligent Matching


Artificial Intelligence, machine-learning, and sophisticated algorithms automate matching of electronic ACH payments to open invoices to speed cash application and achieve higher rates of straight-through processing.

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Research & Analytics


Google-like search tools help manage change-of-address requests and allow for the look-up of payment status (paid, unpaid, rejected) and associated information and documentation, including customer correspondence. Consolidated data streamlines customer support, allowing for an improved customer experience. Customizable dashboards can also be configured for ease of use by any member of your team within a single portal to help make real-time business decisions.

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Benefits of Integrated Receivables

Efficiency:

A modern user interface with a consolidated dashboard, reporting, and sophisticated drill-down search capabilities all eliminate the need to log into multiple, disparate portals to research original payment information.

Risk Reduction:

Real-time receivables insights enhances visibility, allowing for easier, faster identification of risk and enhanced credit risk management.

Strategic Flexibility:

Integrate multiple ERP platforms and newly acquired entities while supporting enterprise efficiency goals and improving ability to factor receivables as an alternative funding source.

Revenue Lift:

Accommodate changing payment preferences, free up constrained credit lines with faster application of cash, and focus on technology to improve customer service.

Resources

How Integrated Receivables Overcome the Four Biggest Challenges in Order-to-Cash

Integrated Receivables: Making the Case

Claiming Your Strategic Identity in a Crowded Market

Integrated Receivables for Financial Institutions

Although the market is seeing a shift toward more electronic payments, lockbox remains a top 5 product for treasury services, and an important revenue generator for banks. In fact, Aite Group, states that most banks view the future of lockbox as a component of a larger integrated receivables (IR) strategy. As a financial institution, you’ve already solved your corporate customers’ needs for processing check payments. Integrated Receivables is an opportunity to provide that same automation for all of your customers’ payment channels, paper and electronic.
  

 

Bank investments in integrated receivables are being driven by strong corporate demand for better receivables management solutions. Corporations increasingly recognize that receivables represent one of their largest and most liquid assets. Streamlining receivables processes can increase a company’s working capital and, in turn, reduce its need for costly borrowing. Efficient receivables processes also provide quick, reliable data for cash flow forecasts and a more cost-effective way of managing the growing number of receivables exceptions.

Most U.S. corporations are not fully satisfied with their current receivables processes. Moreover, few companies have deployed the automation tools necessary to achieve a higher degree of efficiency in processing receivables in their back offices. Fifty-four percent of corporations see an integrated receivables platform as a means of improving their receivables management.

Banks that fail to deploy an integrated receivables solution in the next few years risk placing their treasury services business at a disadvantage in a highly competitive market.

An integrated receivables solution offers banks meaningful opportunities to:

  • Attract new clients
  • Strengthen existing client relationships
  • Grow wallet share
  • Develop a platform for future treasury management initiatives

Integrated Receivables for Corporations

Companies of all sizes spend in excess of $100B each year on their receivables processes. At the same time, more than 65% cannot reach straight-through processing rates for payments greater than 20%. Proliferation of payment channels and types combined with increasing regulatory demands are ratcheting up the challenge of effectively processing and posting payments deployment options.
 
   

CASE STUDY
BLACK HILLS CORPORATION


GOAL
Power utility serving 763,000+ customers needed to reduce
variability in payment processing expense, improve customer service,
increase STP.

CHALLENGE
Lockbox fees via their outsourcer were unpredictable and increasing
rapidly. At one point, costs doubled year over year. The utility also had
poor visibility into its cash position and depended on its outsourcer to
resolve customer inquiries.

SOLUTION
Black Hills brought its payment processing in-house with Deluxe’s
Integrated Receivables solution.

IMPACT

  • 43.62 Days Sales Outstanding (DSO) reduction (48.02%)

  • 100% of receivables the same day they are received

  • Stabilized receivables processing costs

  • Improved ability to resolve customer inquiries with instant access
    to payment images and records

CASE STUDY
CONSUMER SERVICES PROVIDER


GOAL:
Improve speed, gain efficiency, and solve for disaster recovery and
business continuity for a receivables operation processing millions of
payments per month.

CHALLENGE:
This provider had layers of legacy receivables systems at multiple
sites. They needed to simplify operations, build in disaster recovery,
and reduce payment processing expenses while increasing straight
through processing (STP).

SOLUTION:
The firm standardized on Deluxe’s Integrated Receivables solution.

IMPACT:

  • 3.65 Days Sales Outstanding (DSO) reduction

  • 99% of payments processed the same day they are received
    Avoided interruption in service even when a hurricane shut off a
    processing site.

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