New MasterCard sponsored research shows*, yet again, that while the vast majority (88%) of respondents agree that suppliers should be paid promptly, over half (57%) admitted to having actively delayed payments in the past 12 months. Not only this, three quarters (74%) of decision makers think late payment is a fact of business life and will always happen, despite 90% acknowledging that payment delays have wider repercussions for businesses, such as the ability to pay staff or reduce investment.

Basware Pay

Basware Pay connects buyers’ and suppliers’ payment processes through the Basware Commerce Network. Suppliers’ invoices are sent via the Basware Commerce Network, approved by the buyer and once approved become available for payment through a virtual MasterCard account number. The supplier receives an early payment while the buyer typically has extended payment terms, as figure shows:

Source & Copyright©2014 - Basware Inc

Basware claim that “both parties benefit from richer settlement data and full process and payment visibility – leading to less chasing or being chased for payment”, as figure shows:

Source & Copyright©2014 - Basware Inc

Basware financing for supply chain

Basware are also establishing a new business called Basware Financing Services to provide a range of financing services for buyers and suppliers, combining payment with financing services for companies of all sizes. As well as Basware Pay, they will also provide:

• Basware Discount - a buyer-funded supplier financing service. Buyers can easily pick and choose which invoices get paid and when. 
• Basware Factoring which is being developed in cooperation with Basware's newly announced partner, Arrowgrass Capital Partners LLP. It will enable suppliers to receive early payment for invoices, and improve their working capital management with financing provided via Arrowgrass. 

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* Over 1,000 strategic decision makers across Australia, Europe and the US participated in the “Creating Payment Energy” research. 

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CTMfile take: Supplier financing is now being provided to buyers and sellers by many different organisation as the major e-invoicing and procure-to-pay suppliers partner with many different financial insitutions. Provision of supply chain finance is becoming less and less a bank business.