An interest in adopting the latest advances in AP technology may be a response to the expected rise in interest rates.
In a recent article in PYMNTS.com, Matt Clark, COO of Corcentric, talked about the reasons that he anticipates a rise in the adoption of AP automation and e-payment technology. The traditional reasons companies look to automate their financial processes still exist: greater efficiencies, higher accuracy, lower costs, full visibility, and robust dashboards and analytics. He notes that, unlike the piecemeal adoption of solutions that seemed to dominate in the past, companies are now looking for “single source solutions and suites that can support all end-to-end financial processes, from indirect spend management to automated invoicing to payments.”
But Matt indicates that these benefits become even more important when one considers that interest rates in 2017 will continue to rise. Doing more with less while increasing accuracy is a powerful motivation for companies to search out solutions that will allow them to achieve those goals. But there is another area impacted by rising interest rates that will affect sellers as well as buyers. Companies may use that interest rate increase as a reason to push payment terms to suppliers further and further out. In turn, those same suppliers will find it increasingly difficult to manage cash flow and working capital. This, according to Matt, will lead to the rise in adoption of holistic payment solutions where a third party manages 100 percent of payments.
Learn more about the direction the accounts payable industry will take in 2017.