November 2016 Credit Management magazine

ADVERTORIAL
SUPERCHARGE
YOUR GROWTH WITH
THIS INNOVATIVE
PAYMENT SOLUTION
Companies seeking long-term competitive advantage are accelerating
cash collection and driving business growth by leveraging a new
solution from American Express®.
ALL too often, irregular payment cycles make
it hard to ensure a company’s cash flow
stays healthy. Add to this the complexities
.of managing lending policy, and credit
managers’ remit becomes even more demanding.
While they need more than ever to have robust
systems in place, they also have the opportunity to use
innovative and flexible tools to drive customer loyalty
and help the business grow.
It’s in this context that, building on decades of
experience working with businesses around the globe,
American Express® introduced its Working Capital
Solutions, which can speed up payments via a debtneutral
credit source whilst reducing administration for
both the supplier and buyer.
FASTER PAYMENT FOR SUPPLIERS,
FLEXIBLE CREDIT OPTIONS FOR
CUSTOMERS
The solution accelerates collections and helps to
alleviate potential cash crunches, enabling businesses
to free up working capital, which can in turn be used
to drive growth measures throughout the business. It
reduces receivables days for suppliers while extending
the buyer’s payable days, making cash available sooner
and for longer than with traditional invoicing. As a
result, Client/Supplier relationships are strengthened
since the ability to provide an additional line of credit
and more flexible terms plays a key role in increasing
loyalty and customer retention. Add access to this mix
and you create a powerful tool for growth.
‘‘The key benefit of Working Capital Solutions
is that it allows our corporate clients to speed up
payments to suppliers whilst offering their customers
a tool for growth,’’ says Karen Penney, vice-president
and general manager for American Express Global
Corporate Payments in the UK. ‘‘This can then generate
competitive advantage on both sides.’’
SO HOW DOES IT WORK?
The supplier starts by identifying key customers, and
then gives them the option to pay via American Express
using a secure online payments platform.
Upon receiving an invoice, the buyer provides
approval to their supplier who then draws down the
funds on their account, receiving them within five
banking days. The buyer then pays American Express,
with more flexible payment options of up to 55 days.
‘‘Essentially it’s a solution that balances the
opposing payment interests between buyer and
supplier, creating a win-win relationship,’’ explains
Penney.
LAYING THE GROUNDWORK TO
CREATE GROWTH
Working with such a wide range of corporate clients,
American Express is well aware that no two payments
processes are alike. That’s why they’ve made sure
Working Capital Solutions can complement your
company’s existing operations.
“It’s reassuring for our clients to know they don’t
have to change anything, that ordering and invoicing
systems remain the same’’ adds Penney. ‘‘The solution
is straightforward to apply, and once in place it
provides a streamlined payment process that can
really boost operations efficiency.’’
It’s clear that Working Capital Solutions offer more
than just a short-term financial kick. Whilst addressing
immediate challenges, it also provides benefits that
are more holistic and long-term.
Collection can be accelerated at the same time as
the framework for growth is created. A more symbiotic
relationship between supplier and client brings a
distinctive competitive advantage. At the same time
areas such as credit risk, insurance cost and overall
collection costs can be reduced.
When you optimise your cash collections whilst
strengthening key customer relationships, you’re
laying the groundwork for driving business growth.
Working Capital Solutions is available as part
of the American Express suite of Business
Payment tools www.americanexpress.com/uk/
supercharge
32 November 2016 www.cicm.com
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