Michael Alfonsi, Managing Director of Financial Transaction Processing Services & Finance Transformation Solutions at BancTec, discusses paper payments.
If a business collecting $1 million a day in paper checks sees a two-day delay, that adds up to $120,000 a year of real dollars, needed to finance that shortfall.
Dallas, TX (PRWEB) August 28, 2013
While the U.S. Postal Service is saving money by closing and consolidating about 50 percent of its mail processing centers, these moves are costing American businesses real money by increasing the cost of capital. That is according to BancTec, a global leader in business process outsourcing (BPO) and financial transaction automation, which urged businesses to take action in response to the closures.
BancTec notes that despite the growth in electronic payments, more than 40 percent of all payments are still made with paper. The consolidation of mail processing facilities is stretching the national average delivery time for first class mail from three days to five days, and that additional mail float is raising the cost of capital for businesses that receive mailed remittances nationally.
“Businesses experience real financial consequences when it takes longer to receive payments from customers,” said Michael Alfonsi, managing director of BancTec’s financial transactions portfolio. “If a business collecting $1 million a day in paper checks sees a two-day delay, that adds up to $120,000 a year of real dollars, needed to finance that shortfall.”
BancTec said businesses with national customers can reduce the impact of these changes by taking proactive measures. Mailroom and accounts payable outsourcing can create immediate efficiency improvements. Another important consideration is a company’s lockbox strategy. With the consolidation of USPS operations, major hubs now are experiencing delays as they deal with increased mail volumes. Outsourcing to a partner that specializes in lockbox operations can address the delays and issues arising from the USPS consolidations, reducing the impact.
A new ebook, “First-Class Liquidity,” published by BancTec, outlines how business process outsourcing can help companies mitigate the negative effects of these Postal Service consolidations. By engaging a BPO provider to collect, open the mail and process the contents, companies can diminish the impact of the Postal Service’s changes, increase efficiencies and reduce costs.
Alfonsi says in the ebook, “An experienced processor is going to deliver your mail fast, optimize your costs, and optimize your processes. If you could get those three things equal to or cheaper than what you’re currently doing in-house or with somebody else, wouldn’t you make that move?” “First-Class Liquidity” is available for download through http://www.banctec.com.
About BancTec
BancTec is a global leader in business process outsourcing (BPO), providing financial transaction automation and document management services for organizations seeking to drive efficiency in their financial and back-office processes. Headquartered in Dallas with clients in 50 countries, BancTec leverages its proprietary IP and deep expertise to provide flexible, focused solutions across the financial services, insurance, health care, utility, transportation and government sectors. The company operates 21 BPO centers in the United States and worldwide, utilizing a common technology platform to deliver reliability, security, and consistently high levels of performance. To learn more, visit http://www.banctec.com/ or call 1-800-BANCTEC.
