Early payment top says survey
Cash flow gaps and payment predictability were cited as the top reasons for wanting to be paid early according to a new supplier survey by working capital solutions provider, Taulia (www.taulia.com).
In the survey, 43% of respondents covering cash flow gaps (43%) was their top priority, with 26% saying the need to achieve payment predictability and meeting working capital needs (21%) were also key factors in them taking early payments as suppliers in order to reduce their DSO and to meet their seasonal cash targets. In comparison, only 2% were motivated by the prospect of accessing favourable rates.
However, despite the scale of interest in early payments, 39% of suppliers said they are currently paid late by their customers. “This underlines the considerable opportunity for early payment programs to provide suppliers with much-needed working capital support, while tackling the issue of late payments,” says Bob Glotfelty, Vice President of Customer Success at Taulia.
“In today’s competitive environment, businesses need cash more than ever – particularly in light of the ongoing uncertainty around issues such as Brexit and the US-China trade war,” said Cedric Bru, CEO of Taulia. “Early payment programs like Taulia’s enable all businesses along their supply chain to improve their own working capital.”