Terms Optimization Made Easy

Bavelos Terms Optimization

The Bavelos Group’s Terms Optimization Service is a proven, effective way to get better payment terms with your suppliers. We have successfully managed outreach to hundreds of thousands of vendors on behalf of clients looking to enhance working capital results.  Our experienced team analytically profiles each supplier and offers individually tailored payment terms that will increase cash and income results.  In the process, we scrub & cleanse master vendor data, rationalize inconsistent terms and extend net terms to increase cash and expand income generating early payment opportunities. Our Terms Optimization Service employs a combination of digital marketing and inbound/outbound call center resources. All supplier contacts are tracked and new payment terms are authorized in writing with each supplier. Our team escalates exception situations for client assistance, only when necessary.  Prior to any outreach, we fully train your accounts payable and sourcing teams on our best practices to ensure great results.

What Bavelos Terms Optimization Offers?

Terms Extension

Extends net terms with a new precisely targeted payment terms policy.
Terms Rationalization

Vendor Rationalization

Identifies inconsistent terms and aligns them across contracts and relationships.
Phone and Email Outreach

Phone, Email Outreach

Conducts mass outreach to communicate new terms and propose discounts.
Price Optimization

Price Optimization

Customer offers for each vendor to maximize the savings from early payment discounts.
Price Optimization

Vendor File Cleanup

Completes missing profile information and updates compliance records (W-9, W-4) as needed.
Exception Escalation

Exception Management

Escalates unresponsive suppliers or special needs and manages resolution process.
Vendor Scoring

Vendor Scoring

Matches each vendor against our attribute base and scores propensity to extend terms and discount.
Tracking and Reporting

Tracking and Reporting

Tracks supplier outreach progress and regularly reports campaign results against goals.
Exception Escalation

Team Training

Trains designated AP and procurement resources on best practices and simplifies change management.

Each and every supplier completes a Payment Term Election Form that confirms their choice of new payment terms and establishes contractual agreement for early pay discounts or longer net payment terms. The result is increased cash and savings from discounts. There is no need for new software, no complex IT implementation. And all new terms apply to each and every invoice going forward.