With real estate continuing to show strong KPIs across the board, this is no time to work in analog processes. Across the commercial real estate industry, CFOs and accounts payable leaders are keeping pace with the market via the power of payment automation. They’re doing so accelerated as we emerge from a pandemic that exposed the inefficiencies of paper checks, physical lockboxes, and other manual processes.
But it’s not just about the greater efficiency and security that everyone associates with payment automation. It’s also about revenue. Manual processes cost companies like yours a fortune in (mostly) hidden losses. At the same time, they actually prevent the revenue gains that modern, digital payment platforms offer.
For instance, it’s not uncommon for our customers to see rebates that exceed $1 million and savings in the high six figures in just a single year of payments automation with Paymode-X. Here are some of the key factors in cutting those invisible costs and focusing instead on scale and growth.
Paper is costing you
Organizations like yours are processing thousands of costly paper check payments each month. Few industries have a more overwhelming deluge of these than real estate. From the very first vendor invoice to that final mailed check, AP teams have to slog their way through multiple steps that are low in value, but high in costs.
Cash in your pocket
The estimated $4-5 cost per check adds up. With a fully integrated payables solution in the form of payment automation, that cost immediately transfers to cash. Automation also transforms a paper storm into something clean, controllable, scalable, and ERP agnostic. In fact, 57% of our customers have reduced their processing costs by more than half, while 73% have decreased their processing time by a quarter. If accounting was a pie, payment automation leaves you with a sizable wedge thanks to time and capital saved.
As we’ve said in the past, paper’s demise wouldn’t be mourned. But we’d rather not dwell on the past and instead focus on the future. In that hopeful future, payment automation can offer CFOs and accounts payable teams the advantages of early payment discounts. And what about fewer late fees? How about the earning potential of rebates on digital payments as you convert from manually handling checks to virtual card and ACH payments on a single platform?
These questions should help you envisage a new world of payment proactivity. Early payment discounts and rebates are compounding value-adders, not money-draining activities. That in turn paves the way for a pattern of accelerated growth.
Of course, as well as adding value to you, it’s adding value to your vendors. You can read more here about how payment automation in real estate is an AP & vendor victory.
Eyes on the prize
One of the companies that has seen these benefits is forward-thinking Taubman — a company that has improved the financial health of the business by automating AP processes and earning cash-back rebates on electronic payments to vendors. By centralizing payments and reallocating staff time to more value-add activities, executives at Taubman now quickly and easily approve invoices for payment, speeding up time to pay and improving vendor relationships. That gives CFOs and accounts payable teams more time to put their eyes on the revenue prize. In fact, with Paymode-X:
- 8 out of 10 customers see 50% more cash back rebates to pay vendors
- 6 out of 10 customers take advantage of 50% more early payment discounts
- 5 of 10 customers make 50% fewer late payments
And hello cash flow — for all. Or, in other words, optimized working capital. Automating payments is about increasing productivity, increasing security, and reducing cost with 100% automation for your full range of B2B and B2C payments. This makes AP a profit center. It’s time for paper to rest in peace to fuel return on investment in your real estate business.
Let’s face it, grabbing an opportunity with both hands beats continuously chasing your tail.
For more on AP in commercial real estate, read the other two articles in this series:
- Your best weapon against real estate payment fraud? Automation.
- Why payment automation in real estate is an accounts payable and vendor victory
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