Monday 23rd February, 2015

Basware has launched a new solution within its Financing Services portfolio, Basware Discount allows buyers and vendors to optimise 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, we knew we had a real opportunity to provide measurable value. We now combine invoice automation with innovative, new financing services to businesses of all sizes that trade across the Basware Commerce Network. The launch of Basware Discount is closely in line with this customer demand for new, innovative real-time payment and financing services which help companies of all sizes optimise working capital management," said Ad van der Poel, SVP, Basware Financing Services."
 
"Last year we conducted a comprehensive Creating Payment Energy research with over 1,000 strategic decision makers covering North America, Europe and APAC and we found out 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 organisations 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."
 
Basware Discount works to provide benefits for both buyers and their vendors by improving cashflow across the supply chain. Buyers can easily create an early payment programme with Basware Discount and invite their suppliers to sign up. The assurance of a quick payment as well as the visibility is a big win for vendors and this leads to fewer supplier inquiries for buyers, which frees accounts payables (AP) and improves productivity overall.