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Transforming Vendor Finance with Innovative, Dual-Benefit Solutions
Depending on who you ask, the U.S. economy is either already in recession or very likely to go in that direction. In the current business climate, vendors are looking for faster payments so they can make ends meet without waiting weeks or even months for clients to pay their invoices. At the same time, clients want to hold on to cash as long as possible to guard against economic uncertainty.
It’s a tough balance to strike. In a typical transaction, the money leaves the client and goes straight to the vendor. If the vendor wants early payment, then the client can’t keep hold of that cash up until the payment deadline. But now, changing dynamics in vendor finance make it possible to help vendors get their money faster and clients hang onto their money longer.
An Innovative Solution for Vendors and Clients
With Accounts Payable software from NextProcess, your company gains a powerful tool for managing vendor payments. Our vendor portal solution lets vendors log in, view system messages, search their invoices, and get details about their payment status. The portal grants vendors limited access to your AP software so they can see information directly related to their transactions with your company.
Not only is this portal helpful for vendors, but it’s also good for your AP department. Your employees won’t need to spend time answering emails and calls from vendors checking on their payment status. Both vendors and your employees will be able to leave messages for each other in the portal and respond when it suits your schedule.
We’re also offering an exciting new feature. This innovative new chapter in vendor financing allows vendors to receive funds early, potentially within 48 hours instead of the usual 60 days. This feature is so new to NextProcess that we haven’t even named it yet, but your company can start taking advantage of this feature as soon as you implement our software.
The Role of Interface Financial Group (IFG)
Our new vendor financing feature is powered by Interface Financial Group (IFG). IFG reinvents early payments by making it possible for vendors to receive payment early without clients paying immediately. This type of payment financing can be beneficial for both parties during economic downturns.
IFG’s and NextProcess’s cloud-based technology works together to power early payment solutions right inside NextProcess’s accounts payable software. Now, vendors can access the software portal and see the option to receive early payment through IFG-enabled financing. This empowers vendors to enhance their financial management.
Advantages for Vendors
When your company is using NextProcess’s accounts payable solution and one of your vendors decides they would like to receive early payment, they can log in to the vendor portal and pay a percentage of the invoice to receive their money early through IFG. This is not an interest rate, but rather a one-time discount fee paid by the vendor to receive early payment.
Allowing vendors to pay a percentage to receive their money early provides them with much-needed liquidity during challenging times. And as with NextProcess’s other services, IFG financing scales to an individual company’s needs. It works equally well for small and mid-sized businesses and huge corporations. Vendors can choose to receive early payment on one invoice, or hundreds of invoices. It’s a flexible system that leaves vendors with more control over their financing.
Advantages for Clients
On the client’s end, using NextProcess and IFG to enable early payment does not change much about your financial processes. Clients will not pay any extra fees. The only thing that changes is that you’ll be paying the invoice amount to the finance company (IFG) instead of directly to your vendors.
Your company can offer this program to vendors with no additional cost or hassle, thereby building strong relationships with vendors while optimizing your own cash flow. The NextProcess system automatically tracks payment deadlines and ensures that your company never misses a payment and that payment goes to the correct location (either directly to vendors or to IFG, depending on how the vendor chose to handle payments).
The Dual-Benefit System
When your company implements NextProcess accounts payable automation, it benefits you as a client and all your vendors. With innovative features like the vendor portal and new early-pay options powered by IFG, NextProcess caters to both clients’ and vendors’ specific needs in the current economic situation.
NextProcess automation speeds up and streamlines the procure-to-pay process. On the one hand, your company gains faster and more accurate invoice processing. The system processes and approves invoices quickly, then ensures that you’re paying invoices before the payment deadline at a time that’s convenient for your company.
On the vendor’s side, your company using NextProcess also speeds up the billing and payments process. They’ll have insight into the status of each of their invoices with you and the option to receive an early payment if that would work best for their financial needs.
The Future Outlook
NextProcess continually innovates and improves our software to deliver features that benefit your company. New features being baked into the NextProcess AP vendor portal can help both clients and vendors while capitalizing on the changing economic scenario.
As you begin using our accounts payable automation system and offer early payment options to your vendors, you’ll see reduced processing costs, improved vendor relationships, and increased financial control. The vendor finance system gives both vendors and clients increased financial options, possibly helping them weather the anticipated economic recession.
Conclusion
NextProcess’s innovative new system for offering vendors early payment directly through the accounts payable software portal offers potential benefits for both vendors and clients. Vendors have the option to receive early payment for a discount fee, giving them more control over their finances and earlier access to liquid assets. Clients benefit from improved relationships with vendors and the flexibility to choose whether to pay a little early or on the payment deadline for invoices.
In today’s volatile economic climate, both clients and vendors need solutions that enable them to meet their financial needs more easily. With NextProcess early payment options powered by IFG, vendors have the option to receive funds early without impacting clients’ ability to hold on to cash right up until the payment deadline. To learn more about how this new system can work as a solution for your current financial needs, contact NextProcess to set up a free software demo.
