It is frustrating for finance, sales and procurement managers to have targets set to improve working capital without any real evidence that would suggest that it even possible. Companies usually resort to high level benchmarks that can give an idea of what might be possible but due to different corporate footprints it can be very difficult compare any two modern companies from a working capital perspective. Some companies have even commissioned special studies of the payment terms that are available in a particular industry. There are reports written by research organisations on the average payment trends in various countries. All of these can be helpful in the right context but they still don't tell managers what they really wanted to hear in the first place: How do my payment terms compare with those being offered in the market? We hope to address that problem by doing something that will sound very simple.
We collect payment term information on companies in over 184 countries and allow you to compare your customer and supplier terms against that database. This allows you to have a direct comparison against real data that exists in the market. Once you have this information you have a very solid verification for what other companies have achieved. Sometimes the information will tell you that your terms are below market norms. Other times you will find that your terms are better or the same as market norms. In any event you learn a lot about the real terms being offered by real companies in your market.
You can now download our Global Payment Terms Review to see the spread of payment terms in different countries and regions, how many of us seem to distrust our own corporate payments process and the failure of regulation of payment terms in Europe.
How does it work?
You send us a data file detailing the following fields:
- Your company name
- The country name of where your company is based
- The customer or supplier name (customers and suppliers should be sent separately)
- The payment term description (e.g. 30 days at the end of the month following invoice date or 30 days with 2% discount)
- The country name of the supplier or customer
We will then notify you that the process has been completed, obtain payment and send you the results. You can then use the results to help you plan any changes to payment terms that may be upcoming with your suppliers or customers.
When you are ready email us by clicking here.