ATLANTA, Sept. 7, 2016 /PRNewswire/ -- Even in the internet age, companies still make more than 57 percent of all payments through paper-driven processes and checks, according to a survey by SunTrust Banks, Inc. (NYSE: STI) of middle market and small business executives. Not only can these non-electronic processes have a negative impact on a company's cash flow and balance sheet, but also they can significantly increase exposure to fraud.

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In fact, 73 percent of organizations have experienced actual or attempted fraud, with non-electronic processes the number one source of fraud according to the 2016 AFP Payments Fraud and Control Survey.

"Ignoring your payments strategy could have a big impact on your bottom line," said Michael Maza, head of Treasury & Payment Solutions at SunTrust. "Paper transactions open businesses up to the possibility of fraud, and they can also result in missed collections and payments, as well as increased staff time. Embracing automation today will not only save money in the short-term, but can help position companies for the future. As interest rates begin to climb, the speed of collections will play an even more important role in a company's financial strategy."

SunTrust suggests businesses consider the following when developing strategies to leverage electronic payments:






    1. Automate Your Payments First. A payments strategy is at the core of a
       company's financial operation, and automating payments can help
       executives simplify the payments process and better manage working
       capital and improve capital efficiency. According to Paystream Advisors
       Research, it can cost 20 times more to process an invoice in a low
       automation environment than in a highly automated one. Further, companies
       achieve a 90 percent capture rate of early payment discounts by
       leveraging automated payments.By introducing payment systems that employ
       commercial credit card programs, corporate automated clearinghouse (ACH)
       functions, electronic data interchange, direct deposit payroll and
       consolidated payments files, companies can achieve faster funds movement,
       better tracking, and a higher level security while transferring greater
       volumes of data, all while freeing up staff resources.




    2. Automate Your Collections Strategy. Eighty-three percent of businesses
       accept electronic payments, by far the most preferred method of
       collecting payments, but only 58 percent of all collections are completed
       electronically. Companies are looking to push this electronic collections
       percentage higher.Whether automating high volume-low dollar receipts,
       processing repetitive collections, creating a website for online billing
       or outsourcing to a lockbox provider, the right collections strategy can
       make the most of working capital, increase collections efficiency, reduce
       the risk of fraud, and help businesses realize substantial savings. With
       a median cost of $1.50 to receive and process a paper check, a company
       processing 20,000 checks per month could save $360,000 annually
       implementing these strategies.


    3. Use Technology to Reduce Fraud.  The number of organizations that have
       experienced actual or attempted fraud has increased more than 17.5
       percent since 2014, according to the 2016 AFP Payments Fraud and Control
       Survey. A few of the more effective strategies to safeguard against both
       paper and electronic fraud include: basic controls such as automatic
       reconciliation of accounts, blocks, and filters on ACH payments or
       instituting universal payment identification codes.


    4. Improve Cash Management. Electronic payments data and reports that
       analyze that data enable executives to more quickly obtain better
       information and ultimately gain control over their cash management
       challenges. Access to online banking and cash management tools allow
       business executives to track collections and payments, monitor activity
       for fraud and develop a consolidated view of cash positions. Moving to
       electronic methods provides easy access to transactional data and
       reporting on demand, and helps companies better understand their cash
       position and make informed borrowing and investment decisions. This
       visibility into current and future cash needs can help a business manage
       capital to fund growth initiatives.

"At SunTrust, we help companies link business plans, capital requirements and payments programs to generate smart growth," said Maza. "We leverage our payments expertise and knowledge of market trends to advise clients on the right strategic mix for their specific needs, ranging from traditional to electronic methods to help them achieve their business objectives."

Visit the SunTrust Resource Center to read more about developing strategies for the electronification of payments.

About SunTrust Banks, Inc.
 SunTrust Banks, Inc. is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. Headquartered in Atlanta, the Company has three business segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. Its flagship subsidiary, SunTrust Bank, operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states, along with 24-hour digital access. Certain business lines serve consumer, commercial, corporate, and institutional clients nationally. As of June 30, 2016, SunTrust had total assets of $199 billion and total deposits of $153 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. Join the movement at onUp.com.

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SOURCE SunTrust Banks, Inc.