Early payment eases supply-chain finance

More awareness by corporates of the role played by small suppliers has boosted early payment programmes.

In the current inflationary and rates environment, corporates are prioritizing the health of their supply-chain partners that are facing a perfect storm of substantial increases in raw-material prices, tightening liquidity conditions and rising borrowing costs – all of which make cash-flow management a notable challenge.

A supplier survey published by Taulia earlier this year found that 38% of respondents were taking early payments in 2021 – double the number that were taking them in 2017 when the company started the annual survey.

Early payment is viewed as a highly effective tool by an increasing number of our larger corporate clients to support suppliers without impacting their own cash flow

Frederick Rugginz, JPMorgan

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