PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

National Habits Complicate Working Capital Management

By Patricia McGinnis
August 13, 2012
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

For many businesses, a measure of success inthe treasury area is the firm’s ability to keep its days salesoutstanding (DSO) as low as possible, and preferably below thirtydays. Citing research from REL Consulting, a division of TheHackett Group, CFO Magazine reports that when a firm hasinternational customers, it should expect to encounter culturaldifferences in payment practices, and different views about workingcapital.

REL Consulting studied 925 companies with a particular focus onEuropean firms. The data showed that Spanish and Italian firms werethe worst at collecting receivables promptly, with DSO commonlybetween 70 and 75 days. Not surprisingly, firms in those countriesalso took longer to pay their own bills. The disparity between billpayment practices and receivables collection practices was found tobe greatest in Germany and the Scandinavian countries. Firms ofthose nationalities typically paid their bills relatively promptly(with days payables outstanding of 30-35). However, they were farless efficient at collections, with DSO around 50, with associatedgreater strain on available working capital.

The diversity of national norms about bill payment, andexpectations about bill collection, will result in rather differentoutcomes from country to country for those firms attempting to moveto electronic invoice management, electronic matching, andelectronic bill payment. It is challenging enough just within theU.S. market to understand how electronic payment and its associatedacceleration of these processes works differently to the benefit ordetriment of buyers and suppliers. Firms with multinationalcustomer and supplier relationships will have to be prepared foreven more complexity. At the least, firms should use counterpartynationality as a variable in the metrics monitoring their abilityto collect receivables efficiently.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Banking ChannelsCompliance and RegulationDebitFraud Risk and AnalyticsMerchant AcquiringMobile PaymentsPrepaidSelf Service and ConvenienceSocial Media

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    healthcare payments

    The Healthcare Payments Industry Has a Perception Problem

    June 10, 2026
    continuous KYC

    The Future of KYC Is Layered—and Data-Driven

    June 9, 2026
    tokenized deposits

    As Crypto Challengers Emerge, Banks Turn to Tokenized Deposits

    June 8, 2026
    physical digital debit

    Whether Physical or Digital, Debit Cards Are a Payments Mainstay

    June 5, 2026
    agentic commerce

    Separating Hype from Reality in Emerging Payment Trends

    June 4, 2026
    agentic commerce

    Searching for Trust in Agentic Commerce

    June 3, 2026
    stablecoin

    Stablecoin Success Will Depend on More Than Technology

    June 2, 2026
    A man standing outdoors uses a cryptocurrency trading app on his smartphone. This represents mobile finance, freedom, and real-time investing.

    How Gamification Helps Drive Engagement in Digital Banking

    June 1, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result