When President Obama recently announced the creation of SupplierPay, everyone here at Taulia had a hard time containing our excitement. Our vision has always been to design a solution that unlocked the flow of capital and created a way to strengthen cash positions for both buyers and suppliers. SupplierPay puts a spotlight on the issue of cash-strapped small businesses and how the simple act of paying invoices early can make a huge difference in the health of the supply chain and the economy.
And with all the media attention and news articles on SupplierPay, focusing more on the politics of SupplierPay and what it means to the administration, we thought it would be good to hold a webinar that purely focuses on what SupplierPay is, what it means and how it affects the future of business. To help us out, Lex Greensill, co-founder of Greensill Capital and one of the White House advisors for SupplierPay, joined us to further dive into the SupplierPay pledge and it’s impact on small businesses.
If you didn’t catch the webinar, here’s what you need to know:
What is SupplierPay?
Launched on July 11, 2014, the SupplierPay initiative asks large corporations to pay their suppliers early to increase cash flow through the supply chain
Why was SupplierPay created?
· With 28 million small businesses in the United States, SupplierPay was created because small businesses are in dire need of cash and have little to no access to capital.
· Even though large businesses were approving invoices within 5-7 days of receiving them, they were waiting until the due date (typically 60 days) to pay them – leaving suppliers to have to resort to outside expensive financing.
What are the program’s goals?
· The goal is to help small businesses avoid borrowing money and access capital so they can hire more employees, buy new equipment and invest in new opportunities
What is the pledge?
· The pledge has already been taken by 26 of the largest U.S. corporations and promises to help small business gain access to capital through early payments, contributing to growth and employment
· Key elements of the pledge include finding a working capital solution, sharing best practices and implementing a win-win for both buyers and suppliers
How do I create a Win-Win?
· You can create a win-win solution by utilizing Dynamic Discounting, which is the offering of early payments on approved invoices awaiting payment.
· Benefits for the supply chain include being a completely free and optional solution, getting paid sooner, and availability of rates dramatically lower than alternative financing
How can I easily participate?
· Taulia launched its Early Pay Quick Start Initiative, which guarantees:
o Program deployment within 100 days
o 100% of invoices will be available for early payment – with the flexibility to use your own cash or 3rd party funding
o All suppliers will be eligible – regardless of size spend or credit rating
Interested in learning more?