Headquartered in New York City, Paygevity is the developer of PromptPay™, a global digital marketplace for buyers and vendors that want to improve their cash flow, and by doing so, improve their profitability. Our mission is to free up working capital cash in order to maximize shareholder value of corporations as well as the portfolio companies held by private equity funds. We serve all industries and geographic regions, and pride ourselves in our ability to customize a working capital program for you, in order to achieve and ultimately surpass your profitability goals.
PromptPay™’s scalable, zero-cost, and secure enterprise supply chain payment architecture offers corporations, their vendors, and private equity-owned portfolio companies with increased flexibility in working capital management. In turn, substantial and recurring ROI benefits are realized. We invite you to review our website to learn more about why 50% of the S&P 500 use some form of Supply Chain Finance (SCF).
Corporate BuyersPaygevity SCF allows you to extend payments on vendor invoices (i.e. extending DPO) in order to free up cash flow. In turn, corporate buyers can invest that cash in value creating activities to maximize shareholder value.
SCF Programs Driving Enterprise Value CreationCash gains from working capital reduction allow C-Suite increased opportunities to:
- Raise dividends
- Initiate stock buy-backs
- Pay down debt
- Re-invest in Capex initiatives
- Invest in Marketing and R&D
- Fund Acquisitions
- Mitigate vendor supply chain risk
Concurrently, Paygevity SCF offers vendors the opportunity to eliminate getting their payments delayed. Vendors participating in a Paygevity SCF payment program offered by their buyer organizations have the option to get paid immediately.
- Vendor participation in their buyer’s Paygevity SCF program is 100% voluntary.
- Once vendor opts-into buyer’s program, vendor always maintains option to accelerate payment on a portion, all, or none of their invoices.
- In exchange for vendor invoices being paid immediately in Paygevity’s SCF payment program, the vendor elects to take a small discount off of their submitted invoice.
Additional Vendor Benefits
Vendors also benefit from the buyer organization’s stronger credit profile within a Paygevity SCF program. Therefore, the discount charged to the vendor is typically less expensive than a factoring loan because it is based on the buyer’s short-term credit profile. Vendors gain freedom from a host of high interest rates, liens, and personal guarantees from factoring loan arrangements.
Paygevity SCF Is Not A Loan
There is no lending on either side of the buyer/vendor equation. This means there is no impact to balance sheets.
Paygevity’s SCF is an extension of the buyer’s accounts payable and is not considered financial debt. For the vendor, it represents a non-recourse, true sale of receivables.