Transform Your Payables Process into a Revenue Generator…

Guaranteed.

Presented By:

Matt Wright, VP Client Services, Taulia

Fundamental Inefficiency in the Supply Chain

Buyers are Holding Record Amounts of Cash Generating Low Returns

Small Businesses Have Limited Liquidity and High Cost of Capital

Traditional Supply Chain Connectivity Creates Delays in Supplier Payment

Record Amount of Cash Earning Low Return

Buyers Have Excess Cash

U.S. Non-Financial Companies’ Cash & Liquid Assets

Low Return on Cash

U.S. Interest Rate – 10-Year Treasury Rate

($ in tn)

0%

2%

4%

6%

8%

10%

$0.0

$0.5

$1.0

$1.5

$2.0

Suppliers Have No Access to Financing

Suppliers Face a Financing Gap and Predatory Costs of Capital

Traditional Supplier Finance Only Serves the

Largest Suppliers

Banks Continue to Enforce Strict Lending

Requirements

“Long-tail” Suppliers Limited to Factoring, P-

cards and Other Expensive Forms of Finance

Lack of Connectivity Causes Delay in Payments

Su

pp

liers

Bu

yer

s

Inefficient Buyer-Supplier Connections Lead to No Visibility

into Invoice Process

APPROVED INVOICE

10 DAYS

Average time to approve a valid invoice

Source: Taulia Analysis Source: REL/Hackett Group

Average U.S. payment terms

55+ DAYS

Banks Benefit from This Inefficiency

SUPPLIER Invoices Customer

BUYER Approves Invoice

on Day 5

BANK

Invoice-Net 60

Buyer Earns 0.75% APR until

Due Date

Suppliers Borrow at 20+%

APR

1.

2.

3.

Common Challenges within Payables Process

No visibility into the invoice process

Unnecessary invoice

status and inquiry calls

AP Depts. drowning in paper

High cost of

manually processing

invoices

Missed early payment discount

opportunities

Buyer / Supplier Pain Points

Why do supplier inquiry calls take up most of my time?

Am I missing out on supplier discount opportunities?

Is there a better way to optimize working capital?

Buyer Pain Points

Did you receive my invoice?

When will I get paid?

Can I get paid earlier?

Supplier Pain Points

Solving The “What If” Game

What if…

You can address your suppliers’ needs for early payment?

What if…

You keep all the returns that would have normally gone to the bank?

What if…Suppliers could check the status of their invoices online 24/7?

Suppliers could incentivize early payments?

What if…

What if…There is a way for you to pay your suppliers less and have them thank you?

This Can Be Achieved with Dynamic Discounting

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0%0 10 Days 20 Days 30 Days

$

2% 10 Net 30

“Hit-or-Miss Discount”3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0%0 10 Days 20 Days 30 Days

$

$

Sliding Scale Discount

Antiquated Discounting Dynamic Discounting

An Emerging Trend

Introduction Growth Maturity Decline

Innovators Early Adopters Majority LaggardsSource: PAYSTREAM ADVISORS

Dynamic Discounting

IDC/OCR

Paper CheckP-Cards

Outsourcing

Front-end Imaging & WorkflowE-Procurement

Electronic Invoicing

B2B E-Payments

Payables as an Opportunity for Revenue

0 DAYSinvoice

10-15 DAYSapproval

60 DAYS due date

OPPORTUNITY

AVERAGE PAYMENT TERMS (DAYS)

Anheuser-Busch

Hertz

Apple

Industry Average

120 DAYS

60 DAYS

45 DAYS

56 DAYS

The Win-Win Solution that Generates Revenue

Enables Buyers to save money and improve return on cash by paying suppliers early

Enables Suppliers to access less expensive financing alternatives by accepting time-variable Dynamic Discounts

Now With More Flexibility Than Ever Before

Buyers can now pay their suppliers early while having the flexibility to choose the funding source

3rd Party Financial Institution

Buyer-Funded

Flexible Interest Rates Set By You

• Available cash• Supplier

segmentation• Offer rates• Available payment

dates

• DPO strategy• Market interest rate• Supplier rating (Dun

& Bradstreet)• Supplier performance

(Scorecard, Preferred Supplier)

• Opt-in based on supplier need at the time of approval to the

• Offers are made to AR who are managing collections

• Result often differs from initial PO negotiation

Finance controls the offer

Rates are flexible

Supplier can opt-in

Why Suppliers Choose Early Payment Discounts

Allow them to get paid sooner

Payment dates are well under industry averages

Discount rates can be less expensive than alternative forms of financing

More convenient than funding alternatives

Better balance sheet Helps to meet quarterly targets

Cost-Saving Efficiencies

Dynamic DiscountingFinancial Gains

eInvoicingEfficiency Gains

Unparalleled Visibility, Control & Compliance

The Many Cost-Saving Benefits of eInvoicing

Reduced Processing Costs

Increased Invoice Approval Cycle Times

Improved Cash Management

Increased Visibility into Invoices and Payments

Greater Accuracy and Efficiency

Key Buyer Benefits of an Automated P2P Platform

01Eliminate paper and data entry from the invoicing process to increase AP efficiency

INCREASE eINVOICING

02Give suppliers 24/7 access to the status of their invoices and payments

ELIMINATE INQUIRIES

03PO distribution, delivery, confirmation and ASN. PO flip into invoices

CONTROL ASN & PO

04Interact and communicate with suppliers more efficiently. Control mass communication

COLLABORATE

05Allow suppliers to update banking and address; request documents electronically

VENDOR MAINTENANCE

06Add benchmarks, measure performance metrics and make actionable decisions

ANALYTICS

Key Supplier Benefits of an Automated P2P Platform

02Suppliers have 24/7 access to the status of their invoices and payments

TRANSPARENCY

06Suppliers can easily update banking and contact information – reducing error and speeding payments

SELF SERVICESEARLY PAYMENT DISCOUNTS

05Suppliers can opt-in for early payment discount as an inexpensive, fast and easy way to obtain financing

04Suppliers can easily forecast financials and plan ahead for future needs

IMPROVED FORECASTING

IMPROVED PAYMENT TIMING

01Suppliers can easily manage their cash flow with payment certainty 03Billing and remittance

information is available 24/7

LOWER AR COSTS

Turning Payables into a Revenue Generator

Reduced Costs

Financial Operational CostsHard Savings Through Discount ProgramReduce Supplier Inquiries / Redirect Resources

Eliminate Paper within AP

Organically Grow eInvoicingReduce Invoice Approval Cycle TimeReducing Manual Entry Errors

Improved Supplier Services

Do Something FOR your Suppliers Instead of TO your SuppliersSelf-Services Allow Less Administrative ResourcesImproved Controls and Supplier Satisfaction

Transforming Your AP Department

Imagine a world where…

Supplier inquiry calls become a thing of the past

Automating and maximizing supplier discounts is finally achievable

Buyers have a lean invoicing, payables & discounting process trimming millions off the bottom line

Questions?