Early Pay Discount Programs
Early Pay Discount Programs improve profitability and strengthen supplier relationships. Historically less than 1% of spend is paid early for discounts. Yet studies show that over 80% of suppliers will consider trading discounts for accelerated cash. And when discounts are available, the cash used for early payment often exceeds an annualized return of 20%. Compared with today’s limited cash investment options, these double digit returns are a compelling way to bring substantial new savings to the bottom line.
Formalize an Early Pay Discount Program
The Bavelos Group is a leader in Early Pay Programs. Our best practice methods formalize early payment discounts into a high yield mainstream initiative. Our experienced team can designed and implement an Early Pay Discount Program tailored to individual business needs. These Programs are effective with direct and indirect spend, they work with both large and small suppliers, and are effective in countries all around the world.
Bavelos Early Pay Discount Program Services
- Analytics to precisely target suppliers with early pay offers
- Enrollment campaign marketing and outreach
- Experienced call center resources to enroll suppliers
- On-going performance tracking and optimization
- Training and organizational best practices
Get Started NOW – Because “Time is Money”
When it comes to an Early Pay Discount Program, time is truly money. A top performing Program should yield hundreds of thousands in savings each month for every billion of annual spend. And such Programs typically achieve these results with a net increase in cash from working capital. Since everyone’s spend is different, we recomment getting started with a Bavelos early pay Opportunity Assessment. This analyzes your payment history data to profile your spend and accurately estimate potential savings.
Bavelos Early Pay Opportunity Assessment
- Analyses payment history data
- Benchmarks your spend performance
- Profiles your target base of suppliers
- Assesses the opportunity for discounts
- Estimated potential to increased cash