Helping Suppliers keep up using early payments

Are you sure your suppliers are keeping up?

Are you sure your suppliers are keeping up? Would they tell you if not?

Interestingly one of the first comments that prospective supplier finance clients often make when I explain how supplier finance works is “None of my suppliers tell me they need payment early”. 

This is not surprising given that the last message suppliers wish to impart upon their key customer is that they are strapped for cash.  When our mid-sized customers launch their supplier finance programmes they are without exception surprised at the take-up of such schemes. 

To suppliers, getting payment at a time of their choice and at a fully transparent cost is the most flexible and discretionary kind of finance they are likely to have access to.  When your company is growing fast, getting money down to your suppliers promptly is the only way you can be sure that they can keep up with your growth.  

Supplier finance programmes have been a breath of fresh air for many suppliers who would ideally like to address the issue of payment terms but do not feel like that they are in a position to do so. 

For many it is a neat way of solving this dilemma and those that partake in the programmes are more than happy to fund the costs of the programme through discounts on their invoices.

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Mark Spiteri
Director