Working capital optimisation for you. Peace of mind for your suppliers.
Help increase Days Payable Outstanding (DPO) for your business and decrease Days Sales Outstanding (DSO) for your suppliers by consolidating Card payments to suppliers into one simple and secure online platform.
American Express Buyer Initiated Payments is a web portal that lets buyers quickly and efficiently schedule payments to suppliers. It can integrate easily into your Enterprise Resource Planning (ERP) software without disrupting existing Accounts Payable (AP) processes.
The Challenge: A wholesaler, following standard industry practices, offered longer payment terms to its customers than those offered by its suppliers. As a result, cash was going out more quickly than it was coming in, and they were unable to purchase optimum levels of stock for their customers without incurring hefty interest rates.
The Solution: By making use of American Express Buyer Initiated Payments, the wholesaler was able to take advantage of process efficiencies as both a buyer and seller—and gain more days to pay on both ends.
As a buyer, they’ve increased Days Payable Outstanding (DPO), resulting in optimised working capital. As a seller, they’ve taken advantage of earlier payments from customers. BIP allowed them to receive payments just five days after the customer authorised them, which is significantly faster than conventional invoice terms and still allowed their customer to pay only when the statement is due.
Finally, the wholesaler benefitted from enhanced supplier relationships, as BIP enabled them to pay their own suppliers more promptly than most traditional invoicing processes, while still increasing DPO on their end.
Sign up for an American Express Corporate Card program to open up a world of perks, tools and opportunities.