Instant payment - new financing opportunities

22. April 2015

The advantages of electronic data interchange (EDI), as well as the simple and efficient way of financing of trade receivables were presented at this year's industry conference ‘Trends in the food industry,’ by Peter Ondrášek, Director for Strategic Development of CCV Information systems. The solution presented was the ORION Instant payment, which allows to easily secure up to 80% of the value of outstanding invoices within three days, with the remaining 20% after their payment by the customer. The only condition for using the service is to exchange business documents via EDI clearing centre ORION.

For EDI (Electronic Data Interchange) the foods industry is a traditional business area with a high penetration rate, compared to other industries. There is a logical explanation behind this – namely, that foods, representing fast-moving consumer goods, have to be sold quickly which in turn requires quick, effective and reliable processing of business documents. According to a reputable company IDC (2014), using EDI reduces the processing time of documents by 156%. 

Payment of receivables for unpaid invoices, which often happens in weeks, lags behind these processes. Moreover, if a company is forced to pay its liabilities much earlier than when it is paid, its development might slow down and even bigger operating problems might ensue. Classical factoring unavailable for most of these companies due to the fixed setting of a number of highly-demanding conditions. 

ORION instant payment is completed by simply clicking on a selected business case in ORION EDI. Its financing is then realized through an auction of non-banking capital with help of Investment auction, which is licensed by the Czech National Bank to provide payment services. In the first month of operation, invoices worth CZK 100 million were financed this way. Activation and operation of the entire service is completely free and will remain free for the future.

The 6th Annual Conference took place on April 15, 2015 in Holiday Inn hotel, Brno with CCV Information Systems as its partner.

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