AMEX noted that Early Pay streamlines the vendor payment process for large corporate buyers, while accelerating cash flow for vendors. “Access to money and improving efficiency are crucial for the growth of both corporations and the companies they work with,” said Gina Taylor Cotter, Senior Vice President and General Manager of Global Commercial Financing at American Express.
The fine print
There are no implementation, setup, or ongoing maintenance charges for buyers that sign up. In addition, buyers can choose how they want to fund early payments to suppliers. The options include funding the payments on their own, or using the AMEX fund option and paying AMEX on the original payment date.
Early Pay also does not require suppliers to complete lengthy on-boarding, sign difficult paperwork, or pay an enrollment fee; suppliers don’t even have to be AMEX merchants. Simply put, there is no catch.
What this means for supply chains
With companies being able to leverage their accounts payable to reduce costs of goods sold and services, there will be an increase in cash flow and working capital for the entire company. This means supply chains will have more flexibility in what and how many items they plan to order. The entire supply chain will also speed up, eliminating the bottleneck of waiting for an invoice to be paid.
It is still too early to see all of the downstream impacts of Early Pay, but many have high expectations, including Vanguard. If you would like to take a deeper dive into the supply chain impacts of Early Pay, reach out to a Vanguard supply chain planning specialist.
About Vanguard Software
Vanguard Software introduced its first product for decision support analysis in 1995. Today, companies across every major industry and more than 60 countries rely on the Vanguard Predictive Planning platform. Vanguard Software is based in Cary, North Carolina.