February 17 , 2015
Basware Discount brings dynamic payment terms and early payment benefits for buyers and suppliers
Stamford, CT-- Basware has launched Basware Discount, a solution within its Financing Services portfolio that allows buyers and vendors to optimize invoice payment terms for better working capital management. As a service on the Basware Commerce Network, more than one million businesses will be able to benefit from early payment terms, managed online in real time. The service is dynamic in that it offers payment terms on a sliding scale: the earlier the buyer makes a payment, the bigger the discount.
“When we launched Basware Financing Services in September of 2014, we knew we had a real opportunity to provide measurable value. We now combine invoice automation with innovative, new financing services for businesses of all sizes that trade across the Basware Commerce Network . Our customers were asking for e-payment and early payment services. With over one million buyers and suppliers exchanging more than 80 million e-invoices and other electronic business documents over the Basware Commerce Network, we shouldn’t be surprised that they want these services delivered via the network. The launch of Basware Discount is closely in line with this customer demand for new, innovative real-time payment and financing services that help companies of all sizes optimize working capital management,” said Ad van der Poel, SVP, Basware Financing Services.
"Last year we conducted a comprehensive Creating Payment Energy research study with more than 1,000 strategic decision makers covering North America, Europe and APAC and we found that 80 percent of vendors would readily exchange a discount if it meant an early payment. This isn’t entirely surprising considering that it currently takes businesses an average of 13.5 days to process an invoice and 55 days from receiving to paying an invoice. Interestingly, the research also told us that many organizations are ‘cash rich’. There seems to be an apparent and direct connection between the hoarding of cash and the extended payment terms experienced by vendors,” van der Poel said.
Basware Discount is available globally via the Basware Commerce Network. It provides benefits to both buyers and their vendors by improving cash flow across the supply chain. Buyers can easily create an early payment program with Basware Discount and invite their suppliers to sign up. The assurance of a quick payment and visibility into payments are big wins for vendors. As a result, buyers will receive fewer supplier inquiries, which frees up time for accounts payable (AP) and improves productivity. For buyer organizations this means more discounts for bottom line savings, resulting in higher profit margins and top line growth.