May 14th, 2018
Available options for businesses to improve working capital have gotten better and more accessible, in large part due to the increasing availability of technology that automates transactional purchasing and payment processes.
Nick Heinzmann writing for Spend Matters says, “As the speed, cost and accessibility of procurement software such as e-invoicing and purchase-to-pay (P2P) systems have improved, so too has connectivity between buyers and suppliers. And with this increased connectivity comes a wealth of data that can support funding models beyond invoice finance — including technology that offers instant funding at the click of a button.”
No doubt that technology designed to automate the purchasing and payment processes have played a critical role in improving working capital for businesses. One example is electronic invoicing technology which has created numerous opportunities for buyers and suppliers to improve working capital.
A result of this is dynamic discounting where buying organizations and their suppliers initiate early payment discounts on an invoice-by-invoice basis. While dynamic discounting relies on the buying organization’s available capital, digital supply chain finance extends early payments offering to all suppliers.
Digital supply chain is a reality because e-invoicing technology brought procurement to center stage. Funds now could now cover the transactions between buyers and sellers, creating new opportunities to ease working capital issues on both sides.
As for the future, improved technology and new sources of funding can help make digital supply chain finance a reality for everyone in the supply chain, changing the early payment process for the better for both buyers and suppliers.
Ready to transform your finance operations into a profit center? Inspyrus offers the industry’s only integrated invoice automation, payment automation, dynamic discounting and supplier enablement solution on the market.