Can Finance Be Fun?
Finance and accounting are not inherently fun. You might think balancing books or compliance checks are, but one could argue they’re more therapeutic than actual fun. There is a sense of calm when everything lines up and makes sense. But there is room for real fun and excitement, right?
Perhaps the most exciting part of finance is being able to find money that no one thought was there. That’s how legends are made. Finance doesn’t have to be a cost center, but a potential revenue contributor, or at the very least, help reduce some of the cost burdens of its operations. That’s one of the promises of early payments and supply chain finance. You’re already paying suppliers, so what if you can make money doing it?
Impactful Early Payments: Play with Our Modeler
For those of you who like to toy with numbers to see if you can uncover some value, we’ve introduced the Early Payments Modeler. It’s a “no typing required” ROI tool that examines the impact of running an early payments program (and how early payments automation does it way better than one-off supplier negotiations).
You set the values by moving the sliders around, and see what the return is for a program. For comparison, the modeler shows what life is like in the automated early payments world.
Many organizations embark on early payments to achieve capital efficiency and improve supplier relations by helping out with their cash-flow situations. However, the cost of executing early payment programs at scale can negate any cost benefit. Instead we hone in on three areas every early payments program must hone in on to be sustainable and successful.
- Wider supplier adoption
- Integrated supplier communication flow
- Eliminate complex discounting
If you need to understand the business case for early payments, you can review the entire explainer page: “2/10 Net 30 – From Business Fantasy to Reality.”