Next Generation Payable Platform – A Vendor Pay portal is the next generation of technology to automate the payables process. Vendors can easily upload invoices electronically and buyers can now automatically match up open PO’s with open invoices.
e-Invoicing – Buyers and suppliers can migrate from paper invoices and manual processing to e-Invoicing, thus shortening invoice approval times. A Vendor Portal allows suppliers to submit paper invoices which get converted into electronic format for the buyer.
Payable efficiency – Buyers and Suppliers can track the approval process of open and paid invoices through a web based portal from any computer or mobile device cutting down on paper and phone calls.
Early Pay Option – Known as supplier finance or reverse factoring, early pay optimizes cash flow by allowing buyers to lengthen their payment terms to their suppliers while providing the option for suppliers to improve cash flow by getting paid early. This results in a win-win situation for the buyer and supplier. The buyer optimizes working capital, and the supplier generates additional operating cash flow.
What you should know about the Vendor Pay Portal
It is not a loan – Supply finance or reverse factoring is an extension of the buyer’s accounts payable and is not considered financial debt. For the supplier, it represents a true sale of their receivables.
It is not factoring – With our solutions, 100 percent of each invoice—minus a very small transaction fee—is paid to the supplier, and there is no recourse burden on the supplier once the invoice is paid.
It is not just for large companies – It provides value for firms of all sizes and credit ratings.
It does not require specialized software – All you need is a simple browser, and you can use our secure solution from your computer or mobile device.
It does not require UCC or public filings – With our solutions neither the Buyer nor the seller is required to enter a secured financing contract.
How does a Vendor Pay Portal work?
The supplier sends their invoices to the buyer using their current policy and methodology.
The buyer approves the invoices and uploads the approved invoice data (payables as well as any applicable payment offsets such as credit/debit memos) to the AeroPay Express platform.
At any time, the supplier is able to log on to the vendor portal via a web browser to see all the approved invoices. The supplier may do nothing and funds will settle directly in the supplier’s bank account on the original maturity date, or the supplier may select the AeroPay Express option for advance payment.
If paid before the maturity date, 100 percent of the invoice—less a small financing fee or discount is charged and the balance is transferred electronically to the supplier’s bank account. In most cases, the supplier is paid on the next business day. Since funds from the financial institution are advanced based on the buyer’s promise to pay on the original maturity date, financing rates are based only on the buyer’s risk, not the supplier’s. Therefore, financing rates are very attractive—Discount rates can vary based on the buyers desire for extended payment terms.
At maturity, the buyer pays the full invoice amount to the supplier or respective funder on the AeroPay Express Platform platform.
How much does a Vendor Pay Portal cost?
There are no upfront or monthly costs for our state of the art Vendor Pay Portal. The buyer does not pay for the portal or pay extra to extend its payment terms if supplier chooses to get paid early. The supplier pays a small discount only if they want to get paid before the standard due date.
Who can benefit from Vendor Pay Portal?
A Vendor Pay portal works for companies in a variety of sectors, including service, automotive, electronics, manufacturing, retail, and any other sector where there is a buyer – vendor relationship.
It works for companies on both sides of the supply chain. Buying organizations can extend their payment terms, and suppliers can get paid earlier. Vendor finance is a true win-win solution for both partners.
With the AeroPay Express Vendor Pay Portal, the implementation and ongoing management of payables is made easier and faster than with any other solution on the market. Contact us now to learn how we are helping midmarket organizations unlock cash.
The AeroFund Financial team works closely with buyers and suppliers to craft a vendor pay portal plan that fits the evolving needs of your company. Contact us today to find out how we can serve your needs.