Payment terms are a crucial element in the relationship between a company and its business partners. At Ellisphere, the commitment to transparent and fair practices is at the heart of the company's policy for managing payment terms. Three questions for Jean-Marc Mongredin, Deputy Director of Accounting at Ellisphere.
What is the main thrust of your accounting policy at Ellisphere?
For several years now, Ellisphere has been implementing a robust credit policy. This is based on the analysis of scores on the probability of default of the economic players with whom we work; this analysis naturally influences negotiations on payment terms and invoicing. To ensure that our commitments are honored, our Accounts Receivable and Dunning team uses dunning software enhanced by Ellisphere scoring. This tool enables us to closely monitor our customers' payment times, while facilitating reminders for overdue receivables. Every month, we examine financial indicators, in particular DSO (Days Sales Outstanding), using two calculation methods. This monitoring gives us a clear and immediate view of any drift, compared with a normative DSO.
Can you give us some very concrete measures to support optimal management?
Ellisphere takes concrete action to reduce payment times and increase customer satisfaction. Thanks to our experience in the field of payments, we carry out reminders before the due date, thus ensuring payment deadlines without upsetting our business partners. In addition, we systematically check for the existence of a purchase order number, which is often essential to avoid late payment. We are also flexible when it comes to companies in difficulty, offering them payment schedules tailored to their specific situation.
Aren't getting to know third parties and fostering a relationship of trust at the heart of a good accounting policy?
Without a doubt. At Ellisphere, we attach great importance to working with our customers and suppliers to ensure that payment terms comply with current regulations. We take great care to comply with the French Law on the Modernization of the Economy (Loi de Modernisation de l'Economie - LME), paying our invoices within a maximum of 45 days end of month or 60 days from invoice date. We are also attentive to requests for rapid payment, particularly for smaller or more fragile structures. Our buyers are also attentive to the needs of our partners, and we do our utmost to meet the payment deadlines requested.
In conclusion, at Ellisphere, optimizing payment times is a priority that relies on a rigorous policy, concrete measures and close collaboration with all our business partners. We are convinced that this approach strengthens the trust and satisfaction of all those involved in our business relationships.
