American Express is launching Early Pay, a digital financing service that allows large U.S. companies and their suppliers to benefit from discounted bill payments.
Eligible U.S. companies that buy goods and services from U.S.-based suppliers can use the product to increase cash flow, generate working capital, and make their supplier payment process more efficient.
In turn, suppliers can have their eligible invoices paid earlier than their original payment due date for an early payment discount.
“Access to money and improving efficiency are crucial for the growth of both corporations and the companies they work with,” Gina Taylor Cotter, senior vice president and general manager for global commercial financing at American Express, said in a Friday press release.
“The genesis of Early Pay actually began within the walls of American Express," Cotter said. "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."
Companies can leverage their accounts payables to reduce costs of goods and services while offering automatic, flexible payment terms to their eligible suppliers, Cotter added.
Early Pay has no implementation or setup fees, or ongoing maintenance charges for buyers who sign up. Additionally, Early Pay enables buyers to choose how they want to fund early payments to suppliers during implementation.
Amex can fund the discounted early payments to suppliers on the buyer’s behalf, allowing buyers to maintain their payment terms; or buyers can choose to self-fund those payments, allowing them to capitalize on discounts to reduce the costs of goods and services sold.
On the early payment date selected by the supplier, payment is made via ACH or wire transfer to the supplier’s bank account by Amex or the buyer, depending on the buyer's choice.
