Optimizing Payment Process: 5 Key Elements to Tackle

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Sally Hardcastle
Jun 29, 2023
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CFOs need to be very clear about what payment optimization means in practice and what implementing a new payment process will mean for their organization. The focus should be squarely on consolidating and optimizing cash flow across the entire business so that:

  • All organization-wide cash-flows (payment runs and manual payments) are routed centrally through a payment hub
  • Communication with banks is controlled centrally
  • Foreign exchange costs are minimized by making all payments in a local currency. By doing so, cross-border payments are transformed into domestic payments
  • All payments are grouped or re-grouped effectively to optimize transaction value
  • Inter-company payments are performed without physical cash flows to save on transaction-based costs. All group-wide financial needs are managed by the designated payment hub entity

With these requirements in place, we turn to payment elements that are ripe for optimization:

  1. Cash pooling
  2. Inter-company payments/Netting
  3. Central payment processing
  4. Payments on behalf (POBO)
  5. Central cash collections (CCC)

To find out how to approach optimization in each area and how to capture the benefits, read this E-Book today.


Much of this email content was taken from the “Payment Optimization” E-Book authored by Serrala.

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