Some B2B payments players have predicted that, on the accounts payable side of the transaction, higher interest rates will lead companies to extend their payment terms and to seek out AP technologies that offer integrated supplier financing solutions to help with that cash flow crunch on the supplier side.
Invoice automation and B2B payments company Inspyrus has the same idea. According to the firm’s founder and CEO, Nilay Banker, suppliers on the accounts receivable side of B2B transactions will be upping their demand to get paid faster. That means having a solution that can accommodate early payment discounts and dynamic discounting for corporate customers. Check out Banker’s full predictions for accounts receivables professionals below.
“In 2017, expect to see a significant resurgence in interest in and adoption of dynamic discounting as one of the big shifts in B2B payments. While dynamic discounting has been in existence for several years, today, it’s fast becoming one of the key tools of today’s new breed of forward-thinking CFOs who are discarding the old-school practice of sitting on cash and delaying payments, which has proven to deliver inadequate returns in today’s fast-moving and demanding economy. Instead, they’re leveraging dynamic discounting to forge ahead with disruptive approaches to make early-pay discounts a real source of cash — capturing up to 2 percent of corporate spend directly back the bottom line and optimizing cash management in real time.”
“Arming the enterprise with the ability for suppliers to dynamically request early-pay discounts fundamentally changes the game, providing a win-win for both sides of the P2P value chain. It delivers the fastest payments to suppliers, while maximizing discount returns for customers — easily trouncing traditional legacy (slow time-to-value) investment alternatives.”
“In 2017, modern companies leveraging dynamic discounting will gain a major advantage over competitors with a new, significant source of cash savings. CFOs of these organizations will blaze the trail for the ‘new normal’ in corporate finance where the accounting department is now a profit center.”
“To maximize the potential of this paradigm shift, dynamic discounting needs to be coupled with next-generation invoice automation — thereby ensuring that companies capture every discount available. This is a powerful example of how FinTech technology and business innovation is taking root within the four walls of the enterprise, to streamline financial workflows and the financial supply chain, resulting in dramatically better outcomes for both customers and suppliers.”
–Nilay Banker, Founder and CEO, Inspyrus