Technology Company: Payment Method Incentives
Technology Company Payment Method Incentives The Problem 71-day DSO with mostly check payments The Minor Change: 2% discount for ACH payments, added payment links to invoices The Result: DSO improved from 71 to 49 days, 78% switched to electronic payments Simplified Onboarding Process The Problem 65-day average project start delay due to lengthy client onboarding The Minor Change: Introduced automated onboarding forms and digital contract signing The Result: Average kickoff time reduced to 28 days, accelerating revenue recognition by $300,000 annually.
Service Company: Automated Reminders
Service Company Automated Reminders The Problem 95-day DSO due to inconsistent follow-up The Minor Change: Set up automated payment reminders at days 25, 32, and 40 The Result: DSO dropped from 95 to 68 days, worth $180,000 in improved cash flow The Cost: 4 hours of email system setup Streamlined Dispute Resolution The Problem 88-day DSO caused by unresolved invoice disputes The Minor Change: Introduced a shared dashboard for tracking and resolving billing issues in real-time The Result: DSO reduced from 88 to 62 days, unlocking $240,000 in working capital The Cost: One day of internal setup and staff training.
Distribution Company: Smart Credit Terms
Distribution Company Smart Credit Terms The Problem 82-day DSO with blanket 30-day terms for everyone The Minor Change: Segmented terms based on actual payment history (2/10 net 15 for fast payers, net 15 for slow payers) The Result: DSO improved from 82 to 58 days, improving cash flow by $450,000 Early Invoice Incentive The Problem 70-day DSO with consistent late payments The Minor Change: Introduced a 2% discount for invoices paid within 10 days The Result: Average payment time dropped to 45 days, boosting liquidity by $320,000 and strengthening customer relationships through timely settlements.
Manufacturing Company: Invoice Timing Fix
Manufacturing Company Invoice Timing Fix The Problem 75-day DSO despite good customers The Minor Change: Switched from invoicing on shipment date to delivery confirmation date The Result: DSO dropped to 61 days in 90 days, freeing up $280,000 in working capital The Cost: 2 hours of ERP configuration. Payment Reminder Optimization Success 60-day average payment delay across clients The Minor Change: Automated personalized reminder emails triggered three days before due date The Result: Average delay reduced to 32 days within two months, unlocking $150,000 in cash flow The Cost: One afternoon of email workflow setup.