Majority of Finance Professionals Say Difficulty with Collecting Cross-Border Payments Slows Global Expansion

BOSTON, April 14, 2021 (GLOBE NEWSWIRE) — As the worldwide financial system turns into extra “borderless,” one of the toughest issues for companies to do when increasing internationally is getting paid. In reality, a new survey of finance professionals commissioned by Flywire, a worldwide funds enablement and software program firm, discovered that complexities with accumulating cross-border funds is impacting their means to scale their enterprise internationally. Furthermore, 9 out of 10 respondents who’ve a task in dealing with the inbound funds at their corporations mentioned international growth efforts may speed up if companies may deal with overseas change charges in a better method. These identical respondents report income loss as a consequence of operational inefficiencies with receivables processing.

For its new report, Accelerating International Business Growth Through Simplified B2B Payments, Flywire surveyed 301 CFOs, VPs of Finance, Controllers, and different executive-level finance professionals to raised perceive the challenges and alternatives on the subject of receiving enterprise funds. The respondents work at middle-market organizations with a global footprint throughout the manufacturing, expertise, shopper items {and professional} companies industries.

“As a worldwide funds firm serving B2B companies, we all know that when used successfully, funds is usually a key enabler of international growth. However, the established order for a lot of worldwide companies remains to be legacy infrastructure, old-school fee strategies, and complexity with processing incoming funds,” mentioned Ryan Frere, government vp and basic supervisor of B2B at Flywire. “Our survey unveils the vital success elements for organizations to beat the frequent pitfalls on the subject of remodeling funds into a possibility to attain operational effectivity and scale.”

Inefficient Receivables Process Costing Companies Time and Money

Businesses are leaving cash on the desk as a consequence of antiquated funds infrastructure. As many as 55% report month-to-month income losses of between 4% and 5% as a consequence of operational inefficiencies associated to their present fee processing system, and nearly 1 / 4 (23%) say they lose 6-10% of income.

More particularly, the bulk (89%) mentioned they misplaced cash as a result of of time spent on dealing with accounts receivable, with over half (54%) stating they spend 6-10 hours every month managing inbound funds that could possibly be spent on extra strategic endeavors.

Having extra transparency into the receivables course of can allow finance professionals to be extra strategic about rising their enterprise. In reality, greater than half (51%) say the visibility into the standing of incoming funds is vital for budgeting and/or managing working capital.

Concerns for Finance Professionals Span Beyond P&L

Beyond accounting, finance professionals have issues that span safety, dated infrastructure and the affect of the brand new administration on their enterprise.

Cybersecurity is the main enterprise concern for respondents with worries round fraud (90%), being hacked (88%) and cash laundering (85%) topping the checklist. Additionally, finance professionals cite issues with the mixing of expertise (90%), scaling into new areas (88%) and dealing with legacy expertise (88%).

Looking forward, enterprise professionals are alert to the adjustments in political local weather and have perceived notions of the way it could have an effect on their firm. Eighty % of respondents consider the Biden Administration can have an total optimistic affect on their enterprise. Despite that, respondents have issues; 86% have regulatory issues on the way it could affect their firm, and 83% are involved about open borders and the free movement of commerce.

With issues spanning nicely past P&L, finance professionals wish to see a shift of their function and tasks. Over 9 in 10 finance professionals say their function wants to vary from being centered on funds to extra strategic exercise.

“Finance professionals are more and more tasked to do extra with much less; nonetheless, they usually spend time on the improper issues, such handbook reconciliation of funds, shoring up the safety of their programs, or dealing with compliance points,” provides Frere. “By embracing trendy expertise that automates the funds course of with better visibility into FX charges and receivables, finance professionals can spend extra time specializing in optimizing the underside line and strategically rising their enterprise internationally.”

Flywire’s full report might be discovered here.

Survey Methodology

Flywire commissioned Regina Corso Consulting to conduct a survey of finance professionals who work in manufacturing, expertise, shopper items or consulting/skilled companies to grasp how they really feel in regards to the funds processes at their corporations.

This survey is amongst 301 finance professionals who’re no less than a director, work in A/R, A/P, Finance, the Controller’s workplace or the CFO and work in an organization that has between $100 million and $1 billion in income. All respondents additionally say their firm has workplaces or subsidiaries in different international locations. This survey was performed on-line between February 3 and 11, 2021.

About Flywire

Flywire is a worldwide funds enablement and software program firm. We mix our proprietary international funds community, next-gen funds platform and vertical-specific software program to ship an important and sophisticated funds for our purchasers and their prospects.

Flywire leverages its vertical-specific software program and funds expertise to deeply embed throughout the current A/R workflows for its purchasers throughout the training, healthcare and journey vertical markets, in addition to in key B2B industries. Flywire additionally integrates with main ERP programs, reminiscent of NetSuite, so organizations can optimize the fee expertise for his or her prospects whereas eliminating operational challenges.

Flywire presents its 2,250+ purchasers greater than 250 fee strategies and processes funds in additional than 240 international locations and territories world wide. The firm is headquartered in Boston, MA, USA with international workplaces. For extra data, go to Follow Flywire on TwitterLinkedIn and Facebook.

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