The complexities of a global supply chain have led to a rise in companies dedicating their efforts to solving businesses’ cash flow management issues. Much of this market is comprised of alternative lenders, but now one major bank is partnering with a B2B solutions provider to strengthen electronic payments and digital invoicing services for its business customers.
Dutch bank ING revealed Thursday (Feb. 26) that in order to facilitate payments of its clients, it has partnered with Basware for a new capital management service for business-to-business firms.
According to reports, the new services are based on the Basware+Mastercard Pay solution and will focus on streamlining companies’ cash flow management, funding, and payment to suppliers through strengthening ING’s electronic invoicing offerings.
According to Basware SVP of Financing Services Ad van der Poel, ING will integrate the Basware Commerce Network to allow companies to use Basware Pay to purchase items from suppliers and settle invoices. In addition to getting access to working capital, ING customers will also benefit from Basware B2B management resources so suppliers can get paid faster.
Basware announced only days ago that it has launched a new discount function on the Basware Commerce Network to facilitate early payment discounts between buyers and suppliers on the platform.
The new service will also facilitate companies looking to pay their suppliers early to take advantage of early payment discounts. According to ING, buyers could save up to 1 percent when suppliers are paid within three-to-five days.
ING’s announcement, according to the bank’s Global Head of Transaction Services Mark Buitenhek, is part of ING’s efforts to promote innovation in a time when companies in the supply chain are challenged to manage their cash flow. “Extending the benefits of electronic invoicing to include payment is an integral part of our strategy of taking advantage of innovation in order to serve the changing needs of our customers,” he said. “Electronic financial services and e-payments improve financial processes overall, increase visibility and improve cash flow for out customers and is relevant for companies of all sizes.”