Are you a corporate that has seen your surplus cash grow from just a few quarters ago? Possibly due to cash conserving initiatives brought about by the Coronavirus crisis or tapping commercial revolvers. In this day and age of low interest rates, do you have your surplus cash earning meagre returns on Treasuries and bank deposits? Maybe you are already running an early payment program where you offer certain suppliers early payment on their invoices for a discount. But how can you ramp up these early payment programs to all your suppliers to not only reduce costs but minimise supply chain failure risks?
Regardless of the problem, CFOs and Treasurers need to find ways to increase returns given the current economic climate. One option to achieve this goal is to implement a self-funded early-payment program to all the suppliers in their supply chain. Here are a few things to consider:
What is your average invoice approval time? For the success of a supplier finance program, it is essential for invoices to be received, matched and approved in a timely manner relative to payment terms.
Are you looking to extend or standardise your payment terms? Offering your suppliers easy access to affordable finance can be a good bargaining chip when negotiating term extensions.
What type of technology do you need to scale the program? Trying to roll out the program to 1000, 10 000 or 50 000 suppliers can be overwhelming. Many executives think this is relatively easy- they’re just paying suppliers earlier, less a discount, right? Wrong!
What support does your technology provider offer enablement services? How much on-going support is necessary to maximize the program benefits for all? Understanding your options about fully outsourced managed programs to basic enablement services is critical.
This is where Finvex.tech steps in! We give you the ability to generate revenue from your accounts payable. You can maintain a cash neutral position with no impact on your Days Payable Outstanding (DPO) or working capital, or improve your cash flow by extending your current payment terms. By offering your suppliers easy access to working capital finance, you improve the health of your supply chain- vital in today’s turbulent environment. All this without any changes to your standard processes! Your approval and payment workflows remain the same.
Our digitised end-to-end solution makes offering early payments easy! Our proprietary APIs allow for the seamless data communication between your ERP system and our cloud-based platform. Save time and paperwork from one-off early payment agreements with high-value suppliers. With Finvex.tech, no supplier is too small to be part of your program. We digitally onboard, service and support all levels of suppliers. Suppliers can opt in with just a few clicks and accept early payments for all subsequent invoices through our web-based platform or mobile app. Finvex.tech automatically notifies suppliers they have a new invoice available for early payment via email, whatsapp and push notifications.
What are you waiting for? Contact us now for a business case evaluation to see how we can help you start earning risk-free returns on our surplus cash.