Managing Invoicing and Early Payments in the Telco Industry


The Current Challenge: :

Invoice Management & Early Payment of Sub Contractors:

The company accepts orders from Leading Australian Telco’s' for the laying of NBN cabling across Australia. Company engages various Sub Contractors (subbies) across Australia to fulfil these orders. Subbie issues invoice on completion of the order, customer pays invoice once it verifies that the work has been completed in accordance with the order.

Company provides an early payment option for the subbies, whereby a subbie can call the company and request early payment for one or several invoices it has issued. Company would pay the subbie a diluted invoice amount, the same day. This process is handled manually by the company.

The early payment process, had many challenges to both the subbie and the company, some of the challenges being

  • Manual process. Company employees had to take phone call requests from various subbies.

  • Not scalable, costly for the customer.

  • Subbie had no assurance of getting through to the customer on a given day

  • Subbie had no assurance of payment, leading to cash flow challenges for the subbie.

  • By law company has to verify and authenticate payment accounts

  • Subbies unaware of the liquidity of the company

The Solution

Company deploys Lilardia Capital (LC) Reverse Factoring solution. LC portal conducts the necessary regulatory checks such as KYC. Approved invoices are automatically extracted from company accounting system (XERO) and populated onto LC portal, which is branded as the customer. Subbie logs in directly to LC portal, to browse all approved invoices and select the ones that it requires to submit for early payment. LC processes the early payment requests, generates payment instructions, and submits it to the bank. Subbie gets diluted credit funds within a few days. Subbie is notified via email, that the payments been made. LC provides audit trail to the company on the transaction.

Subbie logs into the portal, sees updated dashboard of all approved invoices, invoices that have been paid early and invoices that are to be paid on maturity.

The Benefits

Subbie gets assurance of payment, enabling subbie to better manage its cash.

Overall subbie experience is enhanced, Subbie can now browse all invoices approved by customer, with payment dates. Subbie does not need to call the company. Customer does not have to field telephone call requests for early payment.

Early payment process is fully automated, making it scalable for the company, without bringing on additional staff

Company can expand the solution for its total payments, thereby utilizing the platform as a treasury platform.