In the United States, small and mid-sized companies struggle due to slow billing cycles for delivered goods and services. 120-day billing cycles are destructive to small businesses: delayed cash flow limits economic activity and halts growth across all industry sectors.
A BIGGER PROBLEM
After the 2008 financial crisis, it has been nearly impossible for small companies to acquire loans from traditional banks. Economists have deemed this “a loss of support from banks” and “one of the most devastating outcomes of the crisis.” As a result, an increasing number of corporations are continuing to extend payment terms to as long as 120 days. As a result, small and mid-sized businesses are strained, job creation is stalled and social and economic opportunities are lost. The problem can be catastrophic for businesses requiring working capital.
WHY PAYGEVITY’S SOLUTION IS DIFFERENT
Paygevity’s solution rejuvenates what is now antiquated supply-chain management. It accomplishes this by offering the most cost-effective prompt payment platform in the marketplace. PromptPay™ expedites payment cycles for vendors worldwide.
HOW IT WORKS
From the vendor’s perspective, working with Paygevity couldn’t be simpler. The quick and easy process begins with the vendor submitting an invoice to the corporation. Once the corporation approves the invoice the vendor requests prompt pay from Paygevity. Paygevity sends the funds directly to the supplier in under 10 days, net of a nominal processing fee, and waits the 45, 90, or 120 days to get paid-back from the corporation.
When fully utilizing the system, the technology will capture all historical information associated with payments as granular as invoice identification, and as macro as data analytics. The system can also be used in tandem with existing data-processing platforms. Both vendors and corporations have access to the invoice payment activity.
In November 2014, 45 of the Fortune 500 Companies came together, with the support of the Small Business Administration, to enact “SupplierPay,” an initiative aimed at generating prompt payment of invoices for small businesses.
“Compresses the Distance”
“Alongside dozens of blue chip corporations, Paygevity made its own pledge to offer PromptPay™ in order to leverage the powerful economics that exist within the supply-chain community. It provides a more efficient and responsible prompt payment solution,” said Philip Kazlowski, COO, Paygevity. “Our value proposition is simple: we compress the distance between two points and share the economic gains generated from that proximity with our supply-chain participants. We use technology to enable and enhance the value of that economic proximity. We collect data for analytics, we reduce costs, improve efficiency and promptly pay vendors.”
“PromptPay™ facilitates business-to-business commerce worldwide, offering an enterprise payment solution – across all industry sectors,” added Kazlowski.
The FinTech industry and Paygevity’s vast contribution to it are crucial elements in both social and economic advancement. Paygevity’s innovation democratizes the economic system, while fostering valuable, long-lasting, and sustainable relationships within the global supply chain community.