How to maximise supplier benefits with Liquiditas

Managing cash flow and working capital is essential for businesses to thrive in an economy that is full of challenges. Suppliers often face challenges such as extended payment terms, impacting their liquidity and ability to seize new opportunities. Liquiditas offers a streamlined supply chain finance solution designed to address these issues, providing suppliers with flexible and efficient financial options. 

In this article, we will explore how Liquiditas can help suppliers improve their financial stability, optimise cash flow, and maintain strong buyer relationships. 

1. Global economic outlook for 2024 and supplier challenges

The economic landscape in 2024 presents mixed signals across different regions, with some areas experiencing growth while others face slowdowns. High inflation rates and economic uncertainty have impacted consumer spending, which in turn has led to challenges for businesses across various sectors. For suppliers, the struggle to manage liquidity has become increasingly complex. 

In a recent survey, we found that 91% of businesses reported an impact from extended payment terms, emphasising the strain this puts on working capital. Suppliers often find themselves in a position where they must request early payments from buyers, which can lead to liquidity constraints for both parties. This challenge is particularly relevant in today’s volatile economic environment, where managing cash flow is critical for survival. 

2. Addressing liquidity concerns through supply chain finance

Liquiditas helps suppliers by offering a supply chain finance solution that lets them receive early payments without tapping into buyer cash reserves. Through third-party financing, suppliers can get paid for their invoices sooner, maintaining liquidity without forcing buyers to adjust their payment terms.

This method eases the financial strain on suppliers while strengthening trust and reliability between them and their buyers. Suppliers access working capital when they need it most, and buyers can stick to their regular payment schedules. 

Key benefits: 

• Improved Cash Flow: Suppliers can access early payments without waiting for the full payment term. 
• Financial Flexibility: Liquiditas provides options to either receive full payments or fractional early payments, enabling suppliers to manage liquidity according to their needs. 
• Stronger Supplier-Buyer Relationships: By offering early payment options without pressuring buyers, Liquiditas helps maintain positive supplier-buyer dynamics.

3. How Liquiditas supply chain finance works

Liquiditas simplifies the supply chain finance process through advanced technology. Once a supplier delivers goods or services and the buyer approves the invoice, the supplier can immediately request early payment through the Liquiditas platform. 

This streamlined process ensures that suppliers have control over when and how they get paid. With just a click, they can access funds earlier, easing their liquidity concerns and allowing them to allocate resources for other business needs. 

Process overview: 

1. Supplier delivers goods or services. 
2. Buyer approves the invoice and then it is automatically transferred to the Liquiditas platform. 
3. Supplier accesses the approved invoice on the Liquiditas platform. 
4. Supplier requests early payment or schedules it for a future date. 

With the Liquiditas platform, suppliers can optimise their cash flow and prevent operational disruptions. Its user-friendly interface and full transparency make it easy for suppliers to manage their financial transactions with little hassle. 

4. Leveraging technology for seamless transactions

At the heart of Liquiditas’ solution is cutting-edge technology that integrates with suppliers’ ERP systems. This integration allows for complete transparency, enabling suppliers to view their invoices, request early payments, and manage their cash flow all in one place.  

Suppliers benefit from instant access to critical financial information, accelerating decision-making and providing the flexibility to manage their working capital more effectively. No complicated paperwork or lengthy approval processes are required—everything is digitised and accessible through the platform. 

Key features: 

• ERP Integration: Simplified onboarding and real-time financial data. 
• Transparency: Full visibility into payment schedules and cash flow management. 
• Flexibility: Suppliers can choose to receive full or partial early payments. 

5. The flexibility of Liquiditas: Tailored to supplier needs

One of the standout features of Liquiditas is its flexibility. Suppliers can sell individual invoices or bundle multiple invoices for early payment, and they can even choose to receive a portion of the payment early while waiting for the remainder at the agreed-upon due date. This flexibility enables suppliers to manage their cash flow according to their specific business needs, ensuring they can navigate periods of financial strain with ease. 

Additionally, Liquiditas offers suppliers the option to schedule payments for a later date, providing even more control over their liquidity planning. Whether a supplier needs funds immediately or prefers to wait for the optimal time, Liquiditas adapts to their preferences. 

Flexible Payment Options: 

• Sell single or multiple invoices. 
• Opt for early payment of a full or partial invoice amount. 
• Schedule invoice payments for later dates as needed. 

6. Seamless Onboarding and Full Support for Suppliers

Getting started with Liquiditas is simple. Once the buyer’s ERP system is connected to the Liquiditas platform, suppliers can be onboarded quickly and efficiently. The onboarding process is designed to be as seamless as possible, allowing suppliers to begin requesting early payments without delay. 

Throughout the onboarding process and beyond, Liquiditas provides full support to suppliers, ensuring they have the resources they need to take full advantage of the platform. This comprehensive support guarantees that suppliers can easily manage their cash flow and liquidity challenges while benefiting from the flexibility Liquiditas offers. 

Onboarding Steps: 

1. Buyer connects ERP system to Liquiditas. 
2. Liquiditas reaches out to suppliers for onboarding. 
3. Suppliers begin requesting early payments through the platform. 

7. The 6 advantages of the Liquiditas solution

Early payments through a flexible payment system 

One of the major benefits of Liquiditas is the ability to access early payments without waiting for your invoices to reach their maturity date. The platform offers a flexible payment system that lets you unlock funds tied up in unpaid invoices, giving you the cash flow you need to keep your business moving. Whether you want to take advantage of an upcoming opportunity or manage day-to-day operations, having quicker access to capital ensures you have the flexibility to act swiftly when needed. The seamless payment solution aligns with your financial needs, allowing you to maintain liquidity when it’s most critical. 

Manage unexpected opportunities with ease 

Sometimes, the best opportunities arise unexpectedly—a favorable deal, a bulk purchase, or a chance to invest in a growth area. Liquiditas enables you to seize these opportunities without the stress of finding immediate funds. By giving you access to early payments, the platform frees up capital, ensuring that when an unplanned opportunity comes along, you’re prepared. Rather than letting a great deal slip by due to a lack of liquidity, you can instantly tap into the funds available through your outstanding invoices, keeping your operations agile and responsive. 

Plan your own liquidity strategy, independent of payment terms 

With Liquiditas, you gain more control over your cash flow by designing a liquidity plan that suits your specific business needs, regardless of standard payment terms. Traditional payment cycles can sometimes limit how quickly you can access funds, but Liquiditas allows you to work around those constraints. You can tailor a liquidity strategy that complements your growth objectives and business cycle, ensuring that you always have the necessary resources at the right time. This flexibility provides financial independence, empowering you to manage cash flow on your own terms rather than being tied down by rigid payment schedules. 

Convert your invoices into immediate capital 

Liquiditas gives you the freedom to decide which invoices to sell and convert into instant cash. Whether you have specific invoices you want to monetise or need to unlock funds from a batch of accounts receivable, the choice is yours. With just a click, you can turn unpaid invoices into working capital that goes straight into your bank account. This level of flexibility allows you to optimise your cash flow, helping you keep operations running smoothly while providing the liquidity needed to pursue new opportunities or handle day-to-day business expenses. 

Prioritise internal capital over bank borrowing 

With Liquiditas, accessing early payments reduces the need for external borrowing, allowing you to focus your internal capital on business growth. While maintaining a good relationship with your bank is important, Liquiditas allows you to reserve that option as a backup rather than a primary funding source. Using your own capital through early payments not only lowers your borrowing costs but also gives you greater financial control. With Liquiditas, you can fund operations and opportunities from within, fostering long-term financial health while keeping your bank financing options open. 

Reduce risk and focus on growth 

Once you sell your invoices through Liquiditas, the responsibility of payment collection and risk management is transferred. From that point onward, your focus can shift entirely to running and growing your business, without the burden of managing outstanding invoices. Liquiditas takes on the financial risk, allowing you to reduce uncertainty and concentrate on scaling your operations. With your cash flow secured and risks minimised, you can dedicate more resources to improving productivity, innovation, and overall business growth. 

Empowering suppliers with financial flexibility

Today the world is faced with an unpredictable economy, and in this kind of economy, keeping a steady cash flow is crucial for suppliers to succeed. What can Liquiditas offer is a complete supply chain finance solution that helps suppliers take control of their liquidity. With flexible payment options, easy integration with ERP systems, and full support, Liquiditas allows suppliers to streamline their cash flow, build stronger buyer relationships, and confidently explore new opportunities. 

We can simplify financial challenges for suppliers by offering early payment options and cutting down on administrative tasks. This support helps suppliers stay ahead in a competitive market and sets them up for long-term success.