The TradeCard Early Payment Program - An Innovation in Working Capital and Risk Management
Business analysts focus on cash flow when they assess a company's value and credit worthiness. Costs for raising capital are high and even companies with strong margins can suffer from cash flow problems.
The TradeCard Early Payment Program helps you better manage your cash flow. Other benefits include:
| Optimize credit in supply chain |
| Benefits of TradeCard |
Optimize credit in supply chain helps suppliers support buyer's growth |
| Metric of measurement |
Working capital available to suppliers to support new orders |
| Example |
50% growth of business with supplier in one year |
| Benefits of TradeCard |
Freed up credit line |
| Metric of measurement |
Reduction in loans outstanding |
| Example |
Credit line utilization reduced from 30% to 20% |
| Benefits of TradeCard |
Mitigate risk of non-shipments through failure of suppliers to get financing |
| Metric of measurement |
On time shipment rate |
| Example |
On time shipment rate increased from 85% to 95% |
 |
| Optimize cash flow and balance sheet |
| Benefits of TradeCard |
Reduce window between when goods are paid for and when they are sold |
| Metric of measurement | Number of Days Payable Outstanding |
| Example |
Increase payment terms from 30 to 60 days |
| Benefits of TradeCard |
Increased capital efficiency |
| Metric of measurement |
Shorter Cash Conversion Cycle |
| Example | Reduced finance costs by 10% |
| Benefits of TradeCard |
Earn discounts by offering suppliers early payment programs |
| Metric of measurement |
% of procurement |
| Example |
Cut 2% of procurement cost through early payment programs |
| |
| Reduce costs |
| Benefits of TradeCard |
Reduce cost of goods through early payment discounts |
| Metric of measurement |
% of procurement |
| Example |
Cut 2% of procurement costs through early payment programs |
| Benefits of TradeCard |
Automate manual processes in your accounts payable department; eliminate expensive labor intensive and error-prone tasks |
| Metric of measurement |
Trade management per employee / mistakes per employees / Number of incorrect payments |
| Example |
Manage 35% more transactions per employee. Reduce mistakes by 90% |
Disclaimer: The benefits listed in the Tables above are meant to illustrate the possible benefits of TradeCard. They do not represent
a guarantee of performance and may not apply to your business. See a TradeCard representative to discuss the specifics of the benefits TradeCard could have on your business.
For more information on how you and your suppliers can benefit from the TradeCard Early Payment Program, please email epp@tradecard.com.
