reduce-order-to-cash-cycle

Reduce your Order-to-Cash cycle trade credit insurance

An Order-to-Cash cycle that takes too long has a negative impact on the financial health of your company. Companies with a trade credit insurance experience less payment delays and are paid on average five days earlier than uninsured companies.

A long Order-to-Cash cycle has a negative impact on the financial health of your company, such as cash flow problems, and considerably increases the risk of bad debts. Reducing your Order-to-Cash cycle is essential to

  • improving your cash flow
  • reducing your financial risks 
  • strengthening your growth

Companies with a trade credit insurance experience less payment delays and are paid on average five days earlier than uninsured companies.

The Order-to-Cash cycle corresponds to all the steps required for a company to transform a customer order into effective payment. This process begins with the receipt of the order, includes the delivery of products or services, the issuing of the invoice, and ends when payment is received.

It is a key indicator of a company's financial health and operational performance. A short cycle means rapid conversion of sales into cash, enabling better cash management and financial stability.

A long Order-to-Cash cycle has a negative impact on the financial health of your company:

  • Cash flow problems: Late collection limits the funds available for day-to-day operations and investments.
  • Bad debt risks: The longer the delay, the greater the risk of non-payment.
  • Increased administrative costs: Prolonged accounts receivable management increases costs in terms of follow-up and reminders.
  • Impact on growth: Because of a lack of liquidity, companies sometimes have to turn down new opportunities.

A shorter Order-to-Cash cycle offers many strategic advantages for your company:

  • Improvement of cash flow: Shorter collection times optimize cash flow, which is essential for financing current operations and growth opportunities.
  • Reduction of bad debt risks: A long cycle leaves the company more exposed to the risk of non-payment by customers.
  • Improvement of competitiveness: Effective cycle management enables the company to invest rapidly in new projects.
  • Decrease of financial costs: A shorter cycle reduces the need for external financing to cover cash flow shortfalls.
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What is a trade credit insurance?

Informatie over de financiele situatie van jouw klanten
We monitor the financial situation of your customers and prospects. We share this information with you. This way you choose a financially healthy client portfolio.
Kies de juiste klanten en markten om zaken te doen
Is a customer not paying? Then our collection team will work for you to still collect your money. This saves you time, money and energy!
Wij betalen de schade die jouw bedrijf oploopt als klanten de facturen niet betalen
If we fail to collect your unpaid invoices, we will compensate your loss. This way you avoid write-offs on your debtors.

Benefits of a trade credit insurance for your Order-to-Cash cycle

A trade credit insurance plays a key role in optimizing and reducing your Order-to-Cash cycle:

  1. Reduction of default of payment risks
    With our trade credit insurance, you have access to comprehensive information on the financial health of your customers and prospects, on both national and international markets. This helps you to select reliable partners, thus limiting late payments.
  2. Reduction of payment terms
    With our trade credit insurance, you benefit from our support in monitoring payments and collecting receivables. Dunning is carried out efficiently, reducing late payments. Companies with a trade credit insurance are paid on average five days earlier than uninsured companies.
  3. Protection against bad debt
    Our trade credit insurance protects your business against non-payment by guaranteeing payment of invoices even if your customers go bankrupt. If a customer doesn't pay, we compensate you.
  4. Improvement of your cash flow
    Thanks to our trade credit insurance, you have more liquidity to manage your day-to-day business and develop new projects, while limiting your need for bank financing.

By taking out a trade credit insurance, you reduce your Order-to-Cash cycle. You speed up the collection of your receivables, but you also protect your company against bad debt risks.

Do you want to know more about how to reduce your Order-to-Cash cycle with a trade credit insurance? Then contact us directly for more information or to set up a non-binding appointment. 

Fill in the form below and we will contact you by phone within 48 hours. You can also call us on 02 790 24 15