How Pneusource Inc. turned extended payment terms into a cash flow advantage

Pneusource Inc. is a compressed air specialist based in Springdale, Arkansas, providing sales and service for a broad range of industrial equipment, including air compressors, pumps, filters, blowers, and vacuum systems. With a team of factory-trained technicians serving customers across the region, the company depends on reliable cash flow to manage operations, pay staff, and respond to customer demand. Gary Piker, Owner, explains how SAP Taulia’s solution changed the way Pneusource manages its receivables.

Before: Challenges and opportunities

Over recent years, Pneusource Inc. found itself caught in a growing trend: customers extending payment terms further and further out. Invoices that had once been settled in 30 days were now sitting outstanding for 60 to 90 days or longer, putting real pressure on the company’s cash flow. For a small business that needs cash on hand to pay suppliers, staff, and operating costs, the gap between delivering a product or service and receiving payment had become a persistent challenge. Gary and his team began looking for ways to accelerate collections without disrupting customer relationships.

Why SAP Taulia

When Pneusource discovered that one of its largest customers, a Fortune 500 food processor, offered early payment through SAP Taulia Payables Finance, Gary took the opportunity immediately. The process was straightforward: receive purchase orders through SAP Taulia, create invoices quickly using PO Flip after delivery, then select invoices for early payment through the Cash Planner. Instead of waiting the standard 30 days, Pneusource receives payment in as little as two days, with a notification confirming the payment has been processed and funds deposited directly into the bank account the following day. The simplicity and transparency of knowing the status of every invoice at all times made adoption easy.

After: Value-driven results

Pneusource now opts into early payment on all eligible invoices with this customer. At a cost of two percent of the invoice amount, it compares favorably to alternative payment methods the company previously relied on, such as credit card payments that cost three percent or more. Beyond the direct cash flow benefit, the predictability has changed how Gary thinks about the business: knowing exactly when payments will arrive allows him to plan operations more confidently, close out invoices immediately, and focus the team’s efforts where they matter most. What started as a skeptical trial has become an essential part of how Pneusource manages its finances.