The path to profitable growth in the new era is through collections Author iDealData

Paynet/Ertürk: The way to grow profitably in the new period is through collections

Under current conditions, any disruption in collection increases operational costs and risks for companies, leads to reduced working capital, lower profitability and deterioration of collection-related cash flows. The assets of companies whose cash flow is deteriorating due to collection problems and cannot make the investments required by the competition are also at risk. For this reason, Paynet Managing Director Onur Ertürk says companies should focus on collections more than ever. Ertürk says, “Companies need to use technology effectively in order to focus their energy not on collection, but on profitability and growth.”

The global bankruptcy index points to an annual increase of 15% in 2022, after a decline of 12% in 2020 and 6% in 2021. According to experts, the tightening of monetary policies in countries with interest rate hikes from this year will negatively affect capital flows, especially to developing countries.

As inflation and rising commodity prices increase the importance of working capital around the world, collection management is central to any business that wants to create healthy cash flow.

Because any collection problem creates problems that will directly threaten the existence of the company in this period when working capital is critical.

For example, companies have to use their own resources to continue their business activities due to late payments. This causes cash flow problems and disrupts their operations. Collection delays also prevent companies from seizing opportunities and making the investments they need. This causes them to fall behind in the competition.

The collection problem also creates operational risks. As collection delays turn into bad debts, the business can face serious losses because it cannot receive payment for the product it sells. The problem of collection also increases costs. In the event that payment for a product sold is received in a deferred period, the costs incurred by the company to produce or purchase the same product increase considerably, especially in the high inflation environment in which we find ourselves.

“They need to use technology effectively”

Onur Ertürk, Managing Director of Paynet, Turkey’s leading fintech company in B2B and B2B2C payment systems, says companies that have collection problems cannot take the necessary steps to grow, and this situation puts their assets in danger. Stating that today all companies should focus on this issue more than ever, Ertürk explains how to achieve this: “The main objective of companies under current conditions is to speed up their sales and customer processes. However , it is very important that collection policies go in parallel with technology for a correct strategy. At Paynet, we support companies by digitizing all their payment processes. With Paynet Payment Services, a single technological infrastructure covers all payment instruments. financial payments such as collection processes, the ability to receive payments with all cards With our advanced reporting systems, we enable businesses to instantly and closely monitor transactions and the payment terms of those transactions. the ‘plug-and-play’ solutions offered by Paynet, we allow them not to e incur additional charges and make collections directly from end users. With PayPOS, we make it possible to receive contactless payments in seconds without the need for a physical POS device, and by transforming the physical POS into a mobile app, we help businesses grow their business without incurring unnecessary costs. We ensure the security of all transactions with our 24/7 anti-fraud tools, experienced teams and advanced PCI DSS compliant technical infrastructure.”

-iDeal News Center-

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