Pushing Early Pay Options to all Suppliers

Seriously, one has to wonder why this is not just standard business practice these days for many large companies. Do we really need the U.S. Government trying to come between private commercial contracts with the SupplierPay pledge?

I know many global corporations have started to deploy some early pay solutions. Approved invoice solutions have existed for over a decade or more. But now, Purchase to Pay, eProcurement, einvoicing and Supplier Network solutions are getting more established together with early pay finance techniques. Large global corporations that use these networks to manage suppliers find options to enable their suppliers to receive early payment.

Some of these techniques are squarely targeted at certain supplier segments:

Approved Trade Payable Finance (or Reverse Factoring) – focused on tier 1 suppliers (spending $25M or more as an example).

Dynamic Discounting – while many vendors bring a more than sufficient e-invoicing solution to the table this method has typically been viewed as a long tail solution. According to a recent Taulia survey, that may not be the case. They found the largest companies (USD 1 billion plus) are actually the most likely to accept a discount on all invoices (19% responded in the affirmative to this question). Small and middle market companies all responded in the 10-15% range when asked the same question. The jury is still out on this one.

Pcards – typically touch on less than 5% spend

At our webinar last week, Nipendo talked about a solution with a customer that achieves 97% supplier participation across all spend categories and finance is open to all suppliers regardless of size.

I encourage you to check out the webinar here 

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