The TradeCard Early Payment Program - An Innovation in Working Capital and Risk Management
Cash flow is one of the most important measures of a company's financial health. Without adequate cash flow, it is difficult for a business to pursue new opportunities, acquire other businesses, or pay dividends. Cash flow is especially important for small suppliers that need working capital to purchase raw materials and to support the growth of their business.
With TradeCard's Early Payment Program, buyers can increase their Days Payable Outstanding while suppliers benefit from faster payment - providing both parties with the cash they need to grow a successful business.
In the search for cash flow, buyers increasingly favor open account trading over using Letters of Credit to extend their payment terms, to hold on to their money longer, and to conserve credit lines. The TradeCard Early Payment Program provides suppliers with a solution that helps them alleviate the effects of these trends on their finances. Backed by financial partners, the TradeCard Early Payment Program doesn't just push costs from one trading partner to the other - it takes costs OUT of the supply chain. Here's how it works...
At the supplier's request, the buyer or financial institution pays the supplier 100% of the invoice value, less a discount for early payment, for any eligible invoice. Payment can be made as early as two days after the payment has been authorized by the buyer. This payment is without recourse to the supplier. Discount rates are competitive because the visibility into the financial documentation surrounding a transaction and the good credit of the buyer reduce risk.
The supplier gains access to a new source of working capital and the buyer still pays according to the agreed payment terms - without tapping into their own credit lines when they use one of TradeCard's financial partners.
Click here to see the list of quantifiable benefits for Sellers
Buyers can benefit from early payment discounts or work with one of the partners in TradeCard's financial institution network and benefit from longer payment terms. Funding by the TradeCard financial institution partner enables buyers to keep their days payable outstanding (DPO) long and free-up working capital.
Click here to see the list of quantifiable benefits for Buyers
TradeCard's connectivity, automation and visibility enable quick and accurate resolution of invoices. Risk is reduced because on TradeCard's web-based platform, trade partners and financial service providers get extended visibility into procurement and financial data, to better assess risk and fine-tune credit requirements. Benefits are greater because the Early Payment Program is supported by funding that helps to optimize the positions of the buyer and seller together. This is possible, because in the age of strategic sourcing, buyer-seller relationships are increasingly close.
To sign-up for the program or obtain more information, please email epp@tradecard.com.
