Purchasing software and solutions company Basware has launched Basware Discount, a program that allows buyers and vendors to optimize invoice payment terms for better working capital management, according to the company. A service on the Basware Commerce Network, the program helps companies benefit from early payment terms, managed online in real time. The dynamic service allows companies to set payment terms on a sliding scale: the earlier the buyer makes a payment, the bigger the discount.
The solution is part of the Basware’s Financing Services program.
“When we launched Basware Financing Services in September of 2014, we knew we had a real opportunity to provide measurable value. We now combine invoice automation with innovative, new financing services for businesses of all sizes that trade across the Basware Commerce Network,” said Ad van der Poel, senior vice president, Basware Financing Services. “Our customers were asking for e-payment and early payment services. With over one million buyers and suppliers exchanging more than 80 million e-invoices and other electronic business documents over the Basware Commerce Network, we shouldn’t be surprised that they want these services delivered via the network. The launch of Basware Discount is closely in line with this customer demand for new, innovative real-time payment and financing services that help companies of all sizes optimize working capital management.”
Van der Poel pointed to a 2014 survey the company conducted that revealed that 80% of vendors would exchange a discount for early payment. The research also showed that it takes 13.5 days to generate an invoice and 55 days from receipt of the invoice to payment.
Basware Discount is available globally via the Basware Commerce Network. It provides benefits to both buyers and their vendors by improving cash flow across the supply chain, the company says.
“Buyers can easily create an early payment program with Basware Discount and invite their suppliers to sign up,” the company said in a statement announcing the new program. “The assurance of a quick payment and visibility into payments are big wins for vendors. As a result, buyers will receive fewer supplier inquiries, which frees up time for accounts payable and improves productivity. For buyer organizations this means more discounts for bottom line savings, resulting in higher profit margins and top line growth.”