Experian has teamed with working capital digital marketplace C2FO to provide the Experian Early Payment Programme. The initiative, which is in the process of launching, helps with the liquidity requirements of Experian vendors during the COVID-19 pandemic, according to a Wednesday (Feb. 10) announcement.
“By partnering with C2FO and launching our Early Payment Programme, we are excited to provide enhanced payment/cashflow options to our suppliers. This dynamic, new approach will allow us to offer a simple and straightforward way for them to access early payments and supplement their cashflow,” Experian Global Chief Procurement Officer Mark Langrish said in the announcement.
The C2FO system lets vendors see outstanding invoices and provides a discount rate to speed up the payment prior to due dates. Vendors can choose which invoices to discount with the program and they can buy additional inventory or equipment, invest in their staffers and grow operations with early payments.
C2FO’s infrastructure was developed to work in conjunction with enterprise resource planning (ERP) software already in place without changing the workflow or method in which vendors are paid. An invoice is automatically paid directly by Experian once vendor’s offer is approved without modifications to the current payment workflow.
“We are delighted to partner with Experian and look forward to bringing the benefits of a flexible working capital solution to their suppliers,” C2FO Chief Operations Officer Mark Thomas said in the announcement.
C2FO has enabled over $110 billion in working capital funding and sped up payment by over one billion days for firms in over 180 nations as of its first transaction in March 2010.
As previously reported, early payment discounts can be a valuable tool for purchasers and vendors. For corporate purchasers, early payment discounts can open up a new revenue stream and help with the bottom line, while, for suppliers, accelerated payments help with healthier cash flow.