Customers are more likely to default on invoices
According to Onguard, 48% of finance professionals are dealing with outstanding invoices from customers due to the pandemic.
Besides, 65% of the respondents cited cash flow problems as the most common reason why customers are failing to pay on time. That’s an increase of 14% from February when just 51% of invoices went unpaid due to cash flow issues.
Over a third of finance professionals think their organization lacks the specialist software required for efficient working.
In fact, 55% of them are still relying on programs such as Excel and Numbers for their credit management on a daily basis.
The survey has found that only 35% use specialist credit management software to automate processes. The rest are relying on ERP systems or not having a dedicated system for debtor management.
This lack of technological support may explain why, despite mounting unpaid invoices, only 17% of finance professionals are calling debtors personally to ensure payment on time.
We’ve reported that the European e-invoicing market is expected to reach $4,2 million by 2027, compared to $1,2 million a year ago.