June 27, 2019 -
SAN FRANCISCO--Over 62% of suppliers are interested in receiving early payment from their customers, up from 54% in 2016, according to a new supplier survey by leading working capital solutions provider Taulia.
The survey, which was conducted in Q4 2018, gauged the views of over 18,500 suppliers on the Taulia network. Suppliers - ranging from large multinationals to small SMEs - were asked about a range of topics, from early payments to working capital challenges.
Among the findings were some insights into why suppliers would choose to access early payments. The top reasons cited by suppliers included covering cash flow gaps (43%), achieving payment predictability (26%) and meeting working capital needs (21%). Suppliers also cited that they take early payments in order to reduce their DSO and to meet their seasonal cash target. In comparison, only 2% were motivated by the prospect of accessing favorable rates.
However, despite the scale of interest in early payments, 39% of suppliers said they are currently paid late by their customers. “This underlines the considerable opportunity for early payment programs to provide suppliers with much-needed working capital support, while tackling the issue of late payments,” said Bob Glotfelty, Vice President of Customer Success.
The survey also asked suppliers about their experience of using Taulia. Around 95% rated Taulia as very positive, positive or neutral for usability. Suppliers also noted specific benefits such as the platform’s ease of use, timeliness of payments and the ability to receive appropriate statements and notifications.
“In today’s competitive environment, businesses need cash more than ever – particularly in light of the ongoing uncertainty around issues such as Brexit and the US-China trade war,” said Cedric Bru, CEO of Taulia. “Early payment programs like Taulia’s enable all businesses along their supply chain to improve their own working capital.”
To read the full survey, https://taulia.com/2019-supplier-survey/