A new digital based solution, Early Pay, designed to incentivise larger organisations and local authorities to pay their suppliers before an invoice is due and encourage stronger supply chain relations has been launched by UK Fintech, Saltare.
The new Early Pay solution works through a series of mutually beneficial discounts and offers. Once an invoice has been generated and shared with a buyer, the supplier is notified once it’s approved along with the exact date payment will be made. This increases certainty of payment and reduces anxiety surrounding cashflow issues.
Additionally, at the point of approval, the buyer has the option to offer an early payment in exchange for a small discount. Suppliers in turn are given the flexibility as to whether or not to accept the offer in just three simple clicks.
The buyer benefits by strengthening its relationship with suppliers. The supplier benefits from the certainty of payment and more security in its cashflow, and a closer relationship with its buyer.
Thanks to its mobile native design, Early Pay can be accessed and managed across multiple devices and platforms and offers automated notifications and one click approvals through desktop, mobile and email.
The solution not only supports the practical nature of payments but also encourages a shift in attitude in payment culture. Previously, ‘late’ payers have been penalised with poor payment performance impacting their credit risk; Early Pay turns this thinking on its head by rewarding buyers who pay early and support their supply chain.
Additionally, Early Pay will integrate with suppliers of all sizes ensuring buyers aren’t limited to large-scale suppliers, ensuring a level playing field for the UK’s burgeoning SME sector and wider supply chain.
Along with ease of use, Early Pay offers the supplier access to business-critical insights including payment trends and invoice logs, whilst for the buyer it offers supply data through a dedicated platform with the ability to generate quick and easy reports when needed.
Early Pay will also offer business the opportunity to boost ESG policies and adhere to the prompt payment code as part of the Governments initiatives to increase social value within the supply chain.
Saltare’s Chief Executive Anthony Persse said Early Pay will provide a valuable solution to both supplier and buyer at a critical time: “The UK SME sector is expanding at a rapid rate meaning the problem of late payments and cash tied up in invoices is only set to get bigger. Early Pay has been designed solely for the purpose of improving the rate at which payments are made, making SMEs feel more confident in their cashflow.
“It comes at a crucial juncture for UK businesses. With an estimated £200 billion tied up in unpaid invoices owed to SMEs and over 900,000 hours spent chasing payments, the solution aims to quell the fears of the 88% of SMEs who admit to on-going anxiety surrounding payments.”
Early Pay will integrate with any ERP or financial management system, reducing the strain on internal technical teams thanks to its ‘plug and play’ design.