A Solution to Improve Business Cash Flow in Difficult Times

These days, running a business — almost any type — is stressful. Uncertainty, disruption, and instability factor into the equation of every decision. Business owners and corporate executives worldwide are trying to plan for an undefinable future by managing their cash flow.

To help with that, Barclaycard and SAP have developed a solution that will allow businesses in Europe and the UK to more easily manage cash flow within their supply chain.

Barclaycard Precisionpay Bank Transfer is a simple, seamless, end-to-end payment process that will benefit both buyers and suppliers while offering financial flexibility for both in a mutually beneficial relationship.

“Precisionpay offers significant advantages to clients at all times; however its value is increased even further during this extraordinary period we are all living through,” said David Price, managing director of Commercial Payments at Barclaycard. “The ability to create working capital for your business — while also ensuring you support the cash flow pressures your suppliers may be feeling — means this solution is a win-win for the entire supply chain.”

How It Works

Buyers want the flexibility of using an accessible credit limit to maximize working capital and a simple, frictionless payment process. Suppliers want prompt payments via a cost-effective bank transfer rather than a traditional card payment.

Barclaycard Precisionpay Bank Transfer, which is fully integrated into SAP Ariba Buying and Invoicing and soon enterprise resource planning (ERP), provides both while also offering buyers the opportunity to take advantage of any prompt payment discounts, ultimately improving the relationship.  It is also available as a standalone solution in the interim for ERP users.

As an example, a buyer in Europe or the UK receives a Net 60 invoice from a supplier anywhere in the world on a particular day. Sixty days later, the Barclaycard Precisionpay Bank Transfer automatically pays the invoice. Fifty-nine days after that, the buyer settles with Barclaycard, giving the customer nearly two months of improved cash flow. However, the solution ultimately offers buyers and suppliers the flexibility to negotiate early eettlement to support suppliers’ cash flow, therefore reducing impact on the buyer’s cash position.

“The bottom line is this is all about benefiting our customers on both sides of the supply chain,” SAP Chief Partner Officer Karl Fahrbach said. “There is enough worry and stress in running a business right now.  Anything we can do to help reduce friction, we are only too happy to provide that service.”

To learn more, visit the SAP App Center.

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