How to Achieve Straight-Through AR Posting Rates Over 80%

Tuesday, September 16, 2014

Despite the continuing push of companies to eliminate paper processes to reduce costs and support “green” initiatives, the adoption of electronic payments and remittances has been painfully slow. 

A whopping 67 percent of companies receive most of their payments as paper checks, according to the Remittance Coalition. In fact, seven percent of large companies make all of their payments via paper check, the survey found. Similarly, large corporations receive the greatest percentage of consumer payments via paper checks (40 percent), while automated clearing house (ACH) payments (27 percent) and credit cards (15 percent) round out the top three consumer payments types.

Similar percentages of the remittances arrive as paper, if they arrive at all.

All of this paper makes accounts receivables processing a complex, time-consuming and error-prone process that seriously undercuts a treasury department’s ability to reliably access the financial data it needs for timely and accurate working capital decisions, while reducing its need to borrow.

The solution to these receivables problems is to turn the concept of a traditional lockbox on its head with a so-called reverse lockbox solution.

A reverse lockbox combines electronic invoicing, online approvals and adjustments, electronic payments, and receivables posting to eliminate the gaps that make reconciling and posting receivables so complex.

With a reverse lockbox system, corporations (or the banks that serve them) can accelerate cash flow, improve liquidity management, enhance cash flow analysis, and lower the cost of goods through dynamic discounting and supply chain financing.

Want to learn more? Click here to download Direct Insite’s Reverse Lockbox white paper.

Jim McShea is executive vice president of Direct Insite Corp., which provides an innovative cloud-based solution called PAYBOX® that combines electronic invoicing, online approval and dispute management, electronic payments, receivables posting, and supply chain financing. PAYBOX® is available to corporations and as a private-label solution for bank treasury services providers. McShea can be reached directly at 610-212-2487 or via e-mail at