Any corporation seeking to standardize or extend payment terms without harming the health of suppliers should consider using EnterprisePay.
EnterprisePay is designed to work across the entire spend file, with particular focus on all large and medium suppliers who receive over $1 Million in annual spend.
Unlike traditional methods of managing buyer/supplier relationships that merely defer pain to one side or another, EnterprisePay, our supply chain finance solution, employs a collaborative financing model where the lending agreement exists between the lender and the buyer.
With EnterprisePay, the buyer can choose their own preferred bank or lender to fund early payments on our platform.
The lender assumes risk on the strength of the buyer’s financial standing. Because of the high likelihood that a Fortune 1000-type company will be financially solvent enough to pay their suppliers in 45 or 90 days, the bank is able to offer very low rates to the buyer.
The terms and lending rates are therefore much more favorable to the supplier because they are based on the credit rating of the buyer. The supplier can take advantage of this rate to cash in early payments rather than rely on their own costly line of credit during that 45-90 day waiting period.
The supplier opts in to receive early invoice payments at this ultra-low rate, regardless of when their invoice is actually due to be paid. The collection date is no longer tied to the invoice maturity date.