European Union Regulations Regulating Working Capital


15-min Read

An actionable summary of how European Union Regulations impact the working capital, and how an organisation should plan its next steps to drive the regulation.

Contents

Chapter 01

Executive Summary

Chapter 02

Late Payment Directive
Chapter 01

Executive Summary


Leverage European Union Regulations Improving Working Capital

The Payment Paradox

Managing working capital is always the most crucial long-term financial goals for all the companies irrespective of their size and region.

Earlier companies banked on the idea of delaying their payments. However, the late payment directive regulation in Europe, is now forcing companies to rethink their strategy. While accounts receivables stands to benefit from this new regulation, the impact on the payables is negating the advantage gained.

Moreover, in the current fiscal landscape, easy access to affordable credit might likely be more elusive since interest rates might eventually rise which is again putting a dent in the working capital improvement strategies!

According to a survey by PwC, EUR 950 Billion could be released from the balance sheet of globally listed companies by addressing poor working capital performance.

This eBook aims to educate the readers on the certain upcoming EU regulations and explains what order to cash leaders could do to comply and create a positive impact on working capital.

What are the EU regulations you should be aware of?

In order to improve the European business and bring in more stability and security in the market especially for the Small and Medium Enterprises(SMEs) that consist a significant share, European Commission has come up with several regulations that can change the tide and actually help companies improve their working capital. In this ebook, we will discuss the implications and complications arising from the following 5 directives:

  • Late Payment Directive
    To promote prompt payment culture
  • Payment Service Directive (PSD2)
    To improve security for an integrated payment market
  • Mandatory E-invoicing
    To expedite payment cycles and reduce risk of data loss
  • Cross Border Payment Regulations
    To unify the single payment market (SEPA)
  • PCI DSS Compliance
    To ensure credit card data is stored securely

european-union-regulations-img1

Chapter 01

Executive Summary


Leverage European Union Regulations Improving Working Capital

The Payment Paradox

Managing working capital is always the most crucial long-term financial goals for all the companies irrespective of their size and region.

Earlier companies banked on the idea of delaying their payments. However, the late payment directive regulation in Europe, is now forcing companies to rethink their strategy. While accounts receivables stands to benefit from this new regulation, the impact on the payables is negating the advantage gained.

Moreover, in the current fiscal landscape, easy access to affordable credit might likely be more elusive since interest rates might eventually rise which is again putting a dent in the working capital improvement strategies!

According to a survey by PwC, EUR 950 Billion could be released from the balance sheet of globally listed companies by addressing poor working capital performance.

This eBook aims to educate the readers on the certain upcoming EU regulations and explains what order to cash leaders could do to comply and create a positive impact on working capital.

What are the EU regulations you should be aware of?

In order to improve the European business and bring in more stability and security in the market especially for the Small and Medium Enterprises(SMEs) that consist a significant share, European Commission has come up with several regulations that can change the tide and actually help companies improve their working capital. In this ebook, we will discuss the implications and complications arising from the following 5 directives:

  • Late Payment Directive
    To promote prompt payment culture
  • Payment Service Directive (PSD2)
    To improve security for an integrated payment market
  • Mandatory E-invoicing
    To expedite payment cycles and reduce risk of data loss
  • Cross Border Payment Regulations
    To unify the single payment market (SEPA)
  • PCI DSS Compliance
    To ensure credit card data is stored securely

european-union-regulations-img1

Recommendations


Blog

Transforming The Order-to-Cash Process In Just 4…

Abstract

Does your company experience difficulty in maintaining consistency across the board when collaborating…

4 mins

Blog

The Secret Recipe for AR automation: How…

Abstract

Excerpts from an insightful discussion between Sashi Narahari, CEO HighRadius & Rauli Garcia,…

4 min

Webinar

Artificial Intelligence in A/R: Why Your Work-Life…

Abstract

Are you an AI naysayer? Or do you believe that the future of…

60 min

There’s no time like the present

Get a Demo of Integrated Receivables Platform for Your Business

Request a Demo

Request Demo Character Man

HighRadius Integrated Receivables Software Platform is the world’s only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway – covering the entire gamut of credit-to-cash.