01 Balancing priorities of maintaining days payable with strengthening supplier relationships
02 Addressing persistent follow-ups from suppliers for invoice payments
03 Negotiating cash discounts for early payments bilaterally with each individual supplier
04 Early payments to suppliers can exert pressure on working capital
05 Mismatched receivables and payables cycles
01 Long receivables cycles exert pressure on a supplier’s ability to meet financial commitments
02 Pressure on funding limits a supplier’s ability to pursue business growth
03 Traditional lending burdens a business with debt and can fall short of business requirements due to credit quality limitations
04 Traditional lending may require collateral, guarantees and incurrence of fixed costs
05 Reliance on informal lending sources can prove to be prohibitively expensive
06 To manage liquidity, suppliers rely on early payments in an ad hoc manner in the absence of an organized program
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
The anchor enterprise uploads all approved invoices onto the marketplace for suppliers to be able to request early payment of their invoices
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
Enterprise client has complete control in terms of reviewing the payment requests. It can suggest an edit, or approve the early payment requests
The SME 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
On the invoice due dates, the anchor enterprise makes the invoice payments, which are credited to the accounts of the relevant capital provider
Stronger trade relationships with suppliers
Flexibility to maintain or extend days payable while suppliers are paid early
CredAble’s marketplace dynamics drive ‘best rate’ discovery on supplier offered discounts and cost of 3rd party capital
Platform is built to engage with suppliers on a large scale
Documentation, record keeping and reconciliation with ERPs is digital