One payment strategy does not fit all
Thursday, 19 Nov 2015
Business networks have caused an evolution in purchase-to-pay
Vice President, Global Product Marketing
The purchase-to-pay solution landscape has evolved significantly over the last decade due to technology innovation and the emergence of business-to-business (B2B) networks. B2B networks enable the seamless exchange of information and documents such as e-invoices, helping companies understand and manage spend across the business.
Picture 1: Business networks drive an evolution in purchase-to-pay
A shift in focus of procurement leaders
With the convergence of purchase-to-pay and B2B networks, the focus of procurement leaders has shifted from the physical supply chain to the information supply chain and the financial supply chain. The financial supply chain relies on the information supply chain and this is where new value can be created with intelligent cash flow management.
The elimination of payment friction with financing services
Payment friction in the supply chain occurs because sellers want to get paid immediately while buyers want to hang onto their cash as long as possible. The integration of purchase-to-pay solutions with open B2B networks enable just-in-time financing options that eliminate payment friction.
There are basically 3 ways to improve working capital in the supply chain:
- collect sooner
- pay later and
- pay less.
With Basware Financing Services, you can take advantage of all three options at the same time.
Picture 2: Three ways to improve working capital
The Basware Network makes this possible. Thanks to the exchange of rich information in the Network, buyers and sellers are able to make or take payment as cash flow requires. Buyers can optimize their mix of payment strategies while maintaining strong supplier relationships, and sellers can get the cash they need to grow their business when they need it.
Optimizing payment strategies with just-in-time financing enables Accounts Payable organizations to move beyond process efficiency and cost savings and create new profit streams. For example, Basware Financing Services help buyers enjoy the benefits of early payment discounts and optimize their cash position at the same time. That means more cash is available to grow the business.
One size does not fit all
It is important to note that one financing option does not fit all situations, and that the biggest benefits are realized from optimizing the right mix of payment and collection strategies with the right trading partner.
That’s why Basware offers a diverse portfolio of flexible financing solutions for both buyers and suppliers, including Basware Pay, Basware Discount and Basware Advance.
Picture 3: One size does not fit all
Basware Pay is a bank-financed payment solution for buyers. Basware Discount automates early payment discounts. And Basware Advance provides interim financing to suppliers for unpaid invoices.
What makes Basware Financing Services unique is that it is fully integrated with Basware Purchase-to-Pay solutions, making the right financing available when and where you need it. And, with Basware spend analytics you get real-time insight into spend and cash management needs across the business.
Picture 4: Spend visibility with Basware Analytics
There are other solutions available that provide supply chain financing but only Basware integrates purchase-to-pay with just-in-time financing, powered by the world’s largest open commerce network.
Picture 5: Integrated Purchase to pay, B2B network and financing services
If you would like to learn more about how Basware Financing Services can help you optimize working capital in the supply chain, contact us. We can help by providing a workshop to explore opportunities for better cash flow management in your organization.