Vendor Insta Pay – F.A.Q.

Vendor Insta Pay- Frequently Asked Questions

The Vendor Insta Pay program is truly a win-win-win cash flow solution for today’s businesses.  That being said, the following are our top ten frequently asked questions.

Why would my company want to implement the Vendor Insta Pay Program?

• Increased profitability and improved cash on cash return.   Corporate Financial Officers understand the use of internal dollars for a longer period of time results in more profit. The VIP program will pay your vendors immediately upon acceptance of invoice, and then you reimburse us in 60 days. This means companies currently paying vendors in 30 days will receive an additional 30 days to reimburse us at no additional cost.
  

How does it work?

• When your company implements the Vendor Insta Pay program, your vendors will be given a second payment option.  It is your vendors choice to “opt-in”.

Do all my Vendors need to participate?

• No, you are in complete control of who is offered this program, and the Vendors on your approved list must elect to to “opt-in”.   it is Your Vendor choice and they must decide if the quick payment option will benefit their business.

How can you do this at no cost?

• There is a no cost to you and/or your company.  The vendor pays for program by electing to take advantage of the prompt payment option.

Why would my Vendor be willing to pay a discount?

• In many cases vendors offer a quick payment discount, unfortunately many times they go unused especially in today’s economic environment.   With traditional banks tightening lending covenants many businesses are going to be looking elsewhere to improve cash flow.  By implementing the VIP program, your company should enjoy better service and lead times.

Will you file a lien on my business to implement Vendor Instapay?

• No, VIP is not lending your company money and is unsecured.

Will the VIP program affect my Bond Ratings?

• Since we are not lending money, your balance sheet will remain unchanged.  We take an assignment of  approved accounts payable invoices.  In short, we pay your vendor immediately and then you reimburse us in 60 days.
• As a special note, your credit ratings and bond ratings should improve due to paying faster.

Will the VIP program take over my Accounting Department?

• No, all accounts payable will be managed as they are at this time.    The only change your accounting department will have to make are the Net payment days and the remit to address.

How long will it to set up and what documents do you need?

• Implementation is easy and your program can be up and running in just days.
• We will need a one page application, copy of your most recent financial statement, current accounts payable aging, and a vendor list including phone numbers and email addresses.

What will my Vendors think?

• From our experience we found vendors are very appreciative of this program and those that elect to opt-in typically reward our clients improved service and lead times.