American Express is trying to make the financial ecosystem a lot healthier. Key issues can be identified in this day and age. The supply chain finance bottlenecks, for example, can no longer be overlooked. The financial giant is tackling this problem head-on through Early Pay.
It has become more than apparent the financial sector is woefully inefficient in certain regards. Dealing with supply chain finance, for example, is something a lot of companies dread, for obvious reasons. American Express is looking to make a positive mark on this industry moving forward. Their Early Pay solution is designed for the business financing service providers.
American Express Wants to Streamline Finance
Because of these new solutions, US companies can leverage this solution to increase cash flow. This is only possible when buying goods and services from US-based suppliers. Suppliers can also use this digital platform to have eligible invoices paid a lot sooner. It creates a win-win situation, even though this only marks the initial launch of Early Pay first and foremost.
American Express Senior VP Gina Taylor Cotter adds:
“Access to money and improving efficiency are crucial for the growth of both corporations and the companies they work with. The genesis of Early Pay actually began within the walls of American Express. We originally developed a service to use with our own suppliers in 2016, and its quick adoption and success led us to develop the Early Pay solution for external clients. Now companies can leverage their accounts payables to reduce costs of goods and services while offering automatic, flexible payment terms to their eligible suppliers.”
One of the biggest selling points of this new service is the unique funding option offering for buyers. There are ways to fund early payments through American Express or by self-funding the discounted early payments to suppliers. This allows for a more efficient and streamlined ecosystem for all parties to benefit from.