Payment term extensions

Driving Terms Extensions or Early Pay Discounts

Through the strategy of extending vendor payment terms with options for early pay discounts, V-Card and Supply Chain Financing, VPO offers hands-on implementation services to increase discounts, DPO, working capital and rebates, including:

  • Developing the project plan for a terms extension initiative and establishing the Procurement, Finance and Systems implementation team
  • Deciding terms extension and early pay discount options for the communication outreach to suppliers, including Finance approved APR strategy
  • Creating the list of vendors for payment terms extensions through deep analysis and collaboration with Procurement managers
  • Creating a data base of payment terms, spend, taxonomy and contact information, for the outreach team to onboard suppliers to terms extensions or discount, V-Card and supply chain financing options to current terms
  • Developing the content of communications that conveys the terms extension, early pay discount, V-Card and SCF options to targeted suppliers for projects with and without Dynamic Discounting software
  • Educating Procurement, Finance and Systems about the project and their roles
  • Advising Systems on specifications that achieve the DPO and discount objectives when Dynamic Discounting software is part of implementation
  • Measuring and reporting discount, DPO, capital, and rebate improvements and advising on overcoming obstacles to achieve success

A detailed proposal for hands-on strategic direction is provided to clients. Professional services for implementation are reasonably priced and at a fixed fee, plus travel expenses.

To discuss if Payment Term Extension or Early Pay Discounts strategy is right for your organization, contact us for a conversation.