38% of supplier survey respondents use early payment to manage working capital, up from 19% in 2017
Latest Taulia supplier sentiment survey explores five years of data, changing trends in the payment space, and the views of nearly 80,000 respondents
SAN FRANCISCO, CALIFORNIA, 17 JANUARY 2022 – 38% of respondents take early payments monthly in 2021, up from 19% in 2017, according to a supplier sentiment survey conducted by Taulia, the leader in working capital technology solutions. Taulia’s global supplier sentiment survey has been conducted annually since 2017 and reflects the views of nearly 80,000 respondents over a five-year period.
There has been growing interest from suppliers in regularly receiving early payment once an invoice is approved as an alternative source of finance. In 2021, one-fifth (22%) of suppliers were interested in receiving early payment every time for every customer, compared to 15% in 2017.
The supplier’s reasons for taking early payments varied. In 2021, the main reasons for their interest in early payments were*:
- Cash flow gap (49%)
- Collections/payment predictability (27%)
- Working capital needs (21%)
- Ease of use (18%)
- Reduce DSO (7%)
Cedric Bru, CEO of Taulia, said: “The financial health of suppliers is paramount to building robust supply chains. These results speak for themselves when it comes to showing the progress being made around ensuring that suppliers get paid as they desire – early or on-time. This year has seen significant disruption to supply chains due to a wide range of external factors, but adequate financing shouldn’t be a barrier.
“By working together, those at every point along the supply chain can support the growth of their own business and that of others by offering choice, flexibility, and consistency when it comes to getting paid. We hope to see continued progress with this for every size of business and know that by providing the best technology, we can actively help to make these choices available to as many businesses as possible.”
To read the full report, click here.
About the research
Taulia has held an annual Supplier Survey each year since 2017, with reports published the following year. During this period, 79,918 survey responses have been collected globally. Survey respondents were contacted via email and varied across geography, job title, and industry.
*Note: Respondents to this question were offered the choice of multiple answers, hence the >100% totals.
Taulia is a fintech provider of working capital management solutions headquartered in San Francisco, California. Taulia helps companies access value tied up in their payables, receivables, and inventory. Taulia’s platform and network of more than 3 million businesses enables customers to execute their working capital strategies, support their suppliers with early payment, and contribute to building sustainable supply chains. Taulia processes more than $500 billion each year and is trusted by the world’s largest companies, including Airbus, AstraZeneca, and Nissan. In March 2022, Taulia became part of SAP. For more information, please visit taulia.com.