Startups | Venture Capital | Angle Investing | Loans | IPO | Smart Investments
Startups | Venture Capital | Angle Investing | Loans | IPO | Smart Investments
- Balancing priorities of maintaining days payable with strengthening supplier relationships
- Addressing persistent follow-ups from suppliers for invoice payments
- Negotiating cash discounts for early payments bilaterally with each individual supplier
- Early payments to suppliers can exert pressure on working capital
- Mismatched receivables and payables cycles
- Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments
- Pressure on funding limits a supplier’s ability to pursue business growth
- Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations
- Traditional lending may require collateral, guarantees and incurrence of fixed costs
- Reliance on informal lending sources can prove to be prohibitively expensive
- To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program
- Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments
- Pressure on funding limits a supplier’s ability to pursue business growth
- Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations
- Traditional lending may require collateral, guarantees and incurrence of fixed costs
- Reliance on informal lending sources can prove to be prohibitively expensive
- To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program
HOW it WORKS
STEP 1 ERP Integration
The Early Payment platform is customized and integrated with the ERP system of the enterprise client. The platform acts as a digital marketplace for each supplier of the anchor enterprise
STEP 2 Upload Invoices
The anchor enterprise uploads all approved invoices onto the marketplace for suppliers to be able to request early payment of their invoices
STEP 3 Early Payment Request
Suppliers activate their accounts to view their invoices, choose an early payment date and offer a flat percentage discount in exchange for the early working capital
STEP 4 Requests Approval
Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests
STEP 5 Access to Capital
The platform has capital providers integrated into the system. When a payment request is accepted, the platform facilitates the early payment into the supplier’s account
STEP 6 Enterprise Payment
On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider
