The Better Payment Practice Group finds that using electronic transfer improves payment times
A survey of companies by the Better Payment Practice Group (BPPG) has revealed that four out of five now accept payment by electronic transfer from their business customers. In addition, two thirds of those using this form of settlement found that it reduces late payment.

The research was conducted via this website during December. It asked businesses if they allowed their customers to pay by electronic transfer and, if so, whether it had improved payment times. The results showed that electronic transfer is now a widely accepted form of payment, with 82% of companies allowing their business customers to settle their bills in this way. The survey also highlighted that electronic transfer can be a way of reducing late payment, with 67% of respondents saying that it improved the payment times of their customers.

Richard Wilson, Chairman of the Better Payment Practice Group and Head of Business Policy at the Institute of Directors, commented: “Electronic transfer can be an excellent way of reducing late payment as customer payments are automatically deposited into the supplier’s bank account on the agreed date. Using electronic transfer can be particularly useful for companies that habitually pay later than normal. For example, research by the Institute of Directors has found that 50% of customers are less likely to pay their bills on time during December. As there is no need to wait for cheques to be signed or the post to be delivered, using electronic transfer is one way companies can combat this problem and safeguard their cash flow throughout the year.”

For more information on paying and receiving payment by electronic transfer, see the section on e-invoicing by clicking here

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