Electronic Payments

 

 

Green sneakers with a suit just doesn't do anything for me.

-------------------------------------------------------------------------------------------------------------------

The US Postal Service is slowing down the delivery time on first class mail from 2 days to 3 days. This is going to have an impact on the working capital for companies as the most common practice is to mail an invoice and to then wait for a check to show up in the mail. This change by the Postal Service will add 2 business days to that process.  

This should be a driver for companies to push towards electronic invoicing and electronic collection of funds. With those processes the lag time can be avoided. An added benefit is that most companies start the clock on their Accounts Payable when they receive the invoice in the mail. If you send it electronically you are removing 2 to 3 days from that cycle. So, you could be getting your money 4 - 6 days earlier.