[space px=”-20″]
[heading_3 type=”divider”]Near-Cash Transactionssm[/heading_3]
Encentiv® provides benfits for both Buyers and Sellers. First of all, Buyers receive a reduction in purchase price. This savings amount can be reinvested back into the corporation, thereby increasing the Return on Assets, or it can be applied to the bottom line. Using an example, when a Buyer receives an additional 5% discount in return for making payments within two banking days, this equates to new revenue of $50,000 annually for every $1 million in purchase transactions. This rate would likewise amount to $5 million in new revenue annually for $100 million in purchase transactions. Figure how much in additional revenue your company would have to generate in order to put this amount to your bottom line. These projections do not consider savings from efficiencies realized if one is also going from paper to digital transactions. Additionally, Sellers benefit from receiving outstanding cash flow (through Near-Cash Transactionssm) and a reduction in their account receivables.
The real point of Encentiv® is just not the speed of payment, which is typically two banking days. It’s also about how much money is realized and when it becomes available to each party. In business, cash flow means organizational survival. We all know “time is money”. When margins grow tighter and bad debt increases, improving your revenue cycle becomes more important than ever. Revenue cycle optimization is another way of saying…Encentiv®. The demand for Encentiv® becomes even more robust in times of economic downturns, when excellently managing cash flow becomes critical to organizational performance and maintaining stockholder value.
[heading_3 type=”divider”]Create it[/heading_3]