Introducing The Vendor Insta-Pay Program ("VIP")
Pay Your Vendors In 1 Day
Using Our Money At No Cost To Your Company
Introducing the VIP:
Vendor Insta-Pay Program...
Offer your best vendors the ability to get paid immediately after delivering their goods and services to your company at no cost to your company. In most instances, this no cost program gives your company extra cash flow.
The "VIP" (Vendor Insta-Pay Program) is utilized to solve the fundamental disconnect between companies and their vendors..
FIRST ISSUE: How do we get your vendors paid expeditiously without it impacting your company's cash flow?
SECOND ISSUE: You don't want to allocate cash for payment to your vendors of goods & services until 50 to 70 days from the date on which they invoice.
QUESTION: How do you create a program that gets your vendors paid immediately... while allowing you to allot capital for that payment 60 days later all at NO COST TO YOUR COMPANY?
ANSWER: THE VENDOR INSTA-PAY PROGRAM. ("VIP")
The VIP SIMPLIFIES the process by making payment to your vendors approved invoices on your behalf. Then, you reimburse us when you would normally pay the bill.
THE VIP....
- Enhances Your Credit Rating
- Gives Most Companies More Cash On Hand
- Makes Your Company More Profitable
There is a fundamental disconnect between most companies and their vendors.
Once a vendor delivers their goods and/or services, they would like to be paid as quickly as possible. Conversely, most accounts payable officers like to wait as long as they can before paying invoices received from their vendors. This payment delay makes their company more profitable as it enables them to use their money for a few more cycles before the inevitable pay out.
To remedy this situation, most vendors offer a discount for prompt payment. Unfortunately for both, very few companies take advantage of the discount offer.
The Vendor Insta-Pay Program (VIP) allows you the ability to (have us) pay your chosen vendors one day after their invoices are approved by you without using your money and at no cost to you. You can then wait to pay (us) on an agreed upon timetable.
How do we do this at no cost to you? The prompt pay discounts offered by your vendors will pay for the program. Often times, we can structure the program such that a portion of the discount is shared with you.
Implementation is easy: (a) We work with you to define the vendors to whom this program will be offered; (b) Vendors are offered the program for opt-in; (c) We define a new payment term with your accounts payable manager for the vendors who opt-in (instead of "Net 30" or "Net 60," we create "VIP'); (d) We pay your vendor in one day less the prompt pay discount; (e) You then reimburse us on an agreed upon timetable. The whole program is implemented in days and requires no additional human resources.
Vendor Insta-Pay Program F.A.Q's...
Why would we implement the Vendor Enhancement Program at our company?
Great question. There are different reasons for each company agenda:
(1) Profitability: It is no secret to financial officers that having the use of internal dollars for a longer period of time results in more profits. Example: A company who was paying their vendors in 30 days utilized our VIP Program to have us pay their vendors in one day. They then reimbursed us in 60 days.
(2) Profit Center: Often, the VIP Program may be implemented in a way which allows us to share the discount with you.
(3) Diversity: One of our clients has an agenda to increase their list of active "Disadvantaged/MWBE/Small" businesses but didn't want to change their cash flow management formulas to do so. Many of these small businesses could not afford to do business with our client under "Net 60" terms. The VIP helped them pay their 'Diversity Vendors' within one day, resulting in additional bids from minority/disadvantaged firms.
(4) Cost/Availability: Some of our clients went to their bank to request a similar program. While the financial institution was willing to execute such a program, there was a substantial cost as well as a decrease in the capitalization "availability" to our client as their financial institution treated the program as a lending line. Our VIP Program is unsecured and at no cost to you.
(5) Care: Many companies simply want to help their vendors. However, while the desire to help is there, it is simply not in their best interest to pay their vendors under the terms of "Net 1 Day." Therefore, using our money to do so makes economic sense, especially when you can use our money at no cost to you.
Why would we "not" implement the Vendor Immediate Pay Program?
Great Question. You can implement the VIP at no cost to your company. The VIP enhances your profitability. Vendors love you for giving them a VIP program they can opt-in to at their discretion. The VIP is the true Win Win program for everyone involved.
Does the VIP take over my payables department?
No! All payables will be handled in the way that you manage them at this time. The only changes that your payables office would execute would be (a) Change the payable terms to the new VIP cycle; and (b) Change the remittance address. When your company recognizes invoices as a payable, that data can be electronically sent to us to pay your vendors immediately. It's a very simple process.
Is it really that easy to implement?
Yes! We may have your program up and running within days.
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