One of the hottest new trends in finance is happening in corporate accounts payable departments. Large corporations are looking for discounts from their vendors for early pay. AeroPay Express is riding this trend by offering to set up and manage early pay programs for middle market companies with revenues from 25 million to 3 billion.
Getting middle market companies onboard the early pay band wagon is a bit harder. Large cap companies with their deep pockets and strong AP automation were much better positioned to utilize excess cash to take advantage of vendor discounts.
There are a number of reasons that mid-cap companies haven’t enjoyed early pay success like their larger brethren. Many are false myths about early pay and vendor discounts. One is, “My vendors don’t give early pay discounts”. True some don’t, but many, if asked at the right time and to the right person, offer discounts for early payment.
The second myth is, “Paying early will disrupt my cash flow”. Not necessarily. If you have access to cheap bank credit, getting large vendor discounts could keep cash flow neutral and put more profit on the bottom line. If you don’t have sufficient bank credit, you have the option of using a 3rd party settlement company like AeroPay Express who provides free capital, finds the discounts and shares the discount savings with you.
AeroPay Express is in the business of finding and asking for vendor discounts as well as providing the cash to take advantage of them. AeroPay Express facilitates early pay discounts by contacting the right people in an organization at the right time looking for discounts. Of course, to get those discounts you have to act fast and provide a true early pay solution to the vendor. Paying 10 or 15 days early just doesn’t cut it for most vendors. Paying 30, 60 or 90 days early, now you have someone’s attention. Even if a mid-cap company had the excess cash for early pay, most couldn’t move fast enough to entice a vendor for a discount. That’s where AeroPay Express excels above all the rest. They not only find discounts, they settle those invoices within 24 hours of presentment to the buyer. No other financial institution can do that.
Of course there is sometimes CEO pushback. One is, “Why don’t we just do it ourselves and get all the discounts?” The simple answer is, “So why haven’t you done that?” The truth is, most mid market companies don’t have the manpower, AP automation, quick approval process or expertise to get those discounts. And is it worth the labor for the savings? It could take weeks, months even years before a vendor sees the benefits to giving a discount for early pay. Most in-house office workers could go months and not see a return on their time and just give up. AeroPay Express, on the other hand, only gets paid if they find savings. With their skill, dedication and steady stream of business from other customers, they have the time.
If you want to make more money and not spin your wheels doing it, take a minute and give AeroPay Express a call.