Why Businesses Use Supply Chain Finance by NorthPay?

SCF unlocks the cash that is hidden inside your supply chain by allowing companies to lengthen their payment terms to their suppliers while providing the option for suppliers to get paid early in exchange for a small discount. All parties Win! The company optimizes working capital by extending the trade payable cycle while generating revenue, and the supplier receives operating cash flow. Thus, the risk of disrupting your supply chain is minimized.

  • Optimize days payable, thus providing companies the usage of their cash as long as possible.
  • Generate A/P revenue through early-pay discounts.
  • Our program is simple to start and low touch, all that is needed is a vendor list, payment terms and approved invoices. 
  • NorthPay does not require any changes to your process, thus no interruption to your A/P department.
  • We will train you to use our platform.  And we will be there to support you after that.
  • Minimize A/P transaction costs by decreasing paper check payments to vendors and outsourcing the payment function to a secure, cloud-based platform by NorthPay.
  • The NorthPay platform is technology driven and simple to-use.
  • Reliability. Our platform was built on state-of-the-art secure technology, ensuring safety, and guaranteed up-time.
  • Enhance security and minimize risk by storing all vendor information including electronic payment information, in the secure NorthPay platform.
  • Strengthens your supplier relationships.
  • Our platform is fully customizable and easy onboarding for your suppliers.
  • We can even change the name of the platform to match your brand.

For your suppliers

  • Accelerated cash flow.
  • Better visibility and control of their accounts receivable.
  • Easy to submit invoices for early payment or full term.
  • Gives suppliers control of when they get paid, knowing exactly when they will get paid.
  • Accelerate payment on some, all or none of their receivables.
  • Eliminates payment risk.

Are you a Lender?

Find out how banks and other lenders can benefit from funding Supply Chain Finance.

Why don’t companies run a Supply Chain Finance program themselves?

  • A/P departments are not traditionally a strategic focus area for companies.
  • Cost centers such as A/P are typically not proactive in driving initiatives negotiating discounts or looking for ways to automate their processes.
  • Companies want an expert to run the program.

Frequently Asked Questions

Why do suppliers want a SCF program?

The NorthPay managed accounts payable program allows vendors to receive proactive alerts when an invoice has been approved and is ready to be paid. This alert, in conjunction with the NorthPay portal, will reduce the time your A/P department spends answering vendor questions on the status of invoices.

While your organization may be looking to leverage payment terms to increase days payable, your vendors are conversely looking to minimize their days sales outstanding. Data shows that many vendors are willing to accept early pay discounts as it allows their invoices to be approved and paid faster.

Your vendors will find comfort in knowing that an early payment option is available at any time, without them having to ask you directly for an early payment. It allows them the transparency, flexibility and control to decide where, when and how they get paid by your organization.

How have vendors responded to SCF programs?

Entire industries, such as factoring and other alternative financing options exist to provide vendors (both bankable and non-bankable) the ability to accelerate their accounts receivable and cash flow.  Since these finance options are generally much more expensive than the NorthPay early payment discount, vendors have been receptive. We find there is significant demand across all vendor types for early payment when it is offered.

Many vendors do not want to appear weak to their customer and are reluctant to ask for early payment on their own. Additionally, given the cyclical nature of business; knowing that an early payment option is available at any time is a welcome relief and one less worry.

What makes the NorthPay SCF program so unique?

  1. NorthPay is flexible and supports multiple payment types – ACH, wire, checks, etc.
  2. You, the company control all aspects of the program: fees, terms, etc.
  3. Our low fees are paid by the vender via the quick pay discount.
  4. Program optimization. By using NorthPay, you have an expert Program Manager and dedicated back office that will focus on optimizing every aspect of the program, including:
  • Supplier enrollment and support
  • Marketing to suppliers
  • Program Communication
  • Daily management

Next Level Security

NorthPay has put a premium on security.  Our solution is built on a modern, cloud-based architecture – allowing for a more flexible and secure platform.  Our flexible security profile allows user groups to customize password policies, inactivity timeouts, two-factor authentication, hard timeouts, etc. to align with your own corporate standards.

What do I need to install?

Nothing. NorthPay is a cloud-based web application and requires no installation or special hardware. All you need is an internet connection.

Is it difficult to Onboard Suppliers?

No. Vendors do not need to register to receive payments.

Find out how Supply Chain Finance can help you!

Contact the industry experts at Northpay Financial online, or call 763-780-1527