Tungsten Network, Tungsten Corporation’s electronic invoicing platform, is introducing a simplified tariff structure for suppliers using its global e-Invoicing network, which enables suppliers to submit tax compliant e-Invoices in 47 countries.  

This new pricing follows a successful pilot in the UK earlier this year and will shortly be available to all new suppliers and subsequently rolled out across existing suppliers on the Tungsten Network. The new tariff structure is intended to remove any perceived barriers to adoption.  Once all users are on the new tariff, Tungsten expects that more than 80% of suppliers will no longer need to pay transaction fees to send an e-Invoice over the Tungsten Network.

The tariff includes an increased a yearly fee for those larger suppliers who have an automated connection to the Tungsten Network, in return for which Tungsten gives them 520 free transactions.  All suppliers, whether they use Tungsten’s online Web Form tool or its integrated solution, receive an annual number of free transactions.

Early Payment discounting

Tungsten Network Early Payment discounting service is now available.  It has now been offered to all suppliers in the Tungsten Network's main English speaking markets.

The pricing of the Early Payment discount is mainly driven by the credit rating of the buyer paying the invoices, the number of days outstanding on an invoice and the supplier’s annual invoice flow over the network. The discount charge is calculated from a rate applied to the invoice value which decreases as the invoice nears its payment date. The daily rate and the corresponding charge are clearly displayed next to each invoice available for financing within the supplier’s portal, as shown in the Tungsten Network illustrative example below:

• “If you have an invoice of £10,000, which is approved to pay and there are 30 days remaining until the due date, then the cost might be £100 and we would advance the supplier £9,900 within one business day. If in relation to the same invoice of £10,000, there are 45 days outstanding, then the charge would be £150 in this case.”

New services and efficiencies 

Tungsten Network has also added new services such as the Click-to-Accept portal which eliminates the paper element from the contract management process for all new Tungsten Network suppliers.  Tungsten is currently working on rolling out its Invoice Status Service (ISS) to as many customers as possible, thereby reducing costs for both buyers and suppliers. 

Increased e-invoicing adoption

In the UK pilot of the new pricing structure, one major buyer reported that supplier adoption of Tungsten e-Invoicing increased from 55% to 64% in three months as a result of this new pricing model.  

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CTMfile take: As the e-invoicing market has become more competitive and more efficient, it has come to the view that they can no longer charge much, if anything, for e-invoicing services and that the discounting charges need to be much lower. Although of £150 for £10,000 for 45 days represent an APR of 12%, it is still less than in Dynamic Discounting schemes have charged before.