Background Image
Previous Page  6 / 16 Next Page
Information
Show Menu
Previous Page 6 / 16 Next Page
Page Background

800-422-5995

7

The creators of

BidPay®

found that supply chain

buyers often under-estimate the demand for prompt

payment, a basic misunderstanding that may lead

you and many large supply chain buyers to ignore or

overlook lucrative discounting opportunities that

occur late in the payment cycle.

Traditionally, suppliers have obtained supply chain

and working capital financing from a variety of

bank and non-bank lenders. Credit facilities may

be restrictive, costly and unreliable. Suppliers that

are unable to obtain sufficient external financing

place your supply chain at risk.

BidPay®

provides a

reliable alternative for your suppliers that gives your

company greater supply chain control and income

opportunities previously reserved for lenders.

On average, short-term borrowing rates for well-

capitalized Fortune 500 companies are currently

less than 3% per year. Cash equivalents earn less

than 1% per year. Using cash, near-cash investments,

or short-term borrowings to finance the early

retirement of your trade payables at a discount

creates annualized returns of 10% to 20% on your

investment (net of your cost of short-term funds)

and millions of dollars annually of incremental net

pre-tax income.

Discounting trade payables never made more sense

than it does today. Payable discounting has no

adverse effect on your liquidity or leverage ratios

whether you use cash or short-term debt to fund the

early retirement of your accounts payable.

BidPay®

is also currency-neutral, so it is perfect for

your company or its subsidiaries with suppliers in

foreign countries where access to credit and capital

markets is scarce.

OF SUPPLIERS STATE

A WILLINGNESS TO

OCCASIONALLY OR ALWAYS

ACCEPT DISCOUNTS FOR

FASTER PAYMENT

85%