BlogFeb 26, 2025
The Pillars of a Successful Early Payment Program: Show Me the Money (Faster!)
Let's be real—when it comes to running a business, cash flow is king, queen, and the entire royal court. Getting paid on time (or better yet, ahead of time) can make the difference between a company that thrives and one that’s constantly sweating payroll. Enter Early Payment Programs (EPPs)—the unsung heroes of liquidity management.
But here’s the kicker: not all early payment programs are created equal. Some are smooth and effortless, while others feel like navigating a maze blindfolded. If you want to build a rock-solid EPP that works for both buyers and suppliers, you need to focus on the following key pillars.
Imagine walking into a shoe store where they only sell size 9 sneakers. Doesn’t matter if you have tiny feet or Shaq-sized soles—size 9 is all you get. That’s what a rigid early payment program feels like to suppliers.
A good EPP must be flexible—allowing suppliers to choose:
- When they want early payment
- How much of their receivables they want paid early
- Whether they want a one-time arrangement or a long-term deal
Use Case:
A manufacturer supplying raw materials to an auto company might need early payments only during peak production seasons. If they’re forced into a rigid program, they’ll either reject it or feel trapped. But a dynamic, opt-in model ensures they use it when it actually benefits them.
Nobody wants to sell their invoice at a 20% discount just to get paid a few weeks earlier—unless they’re in desperation mode. A well-structured EPP balances the cost of early payment with supplier incentives, ensuring that it’s a win-win and not a corporate shakedown.
- Buyers win by getting a discount on purchases.
- Suppliers win by improving cash flow at a fair cost.
- Finance teams win because, well, fewer late payment emails.
Use Case:
An FMCG distributor working with a retail chain might offer a 1.5% discount for payments made within 10 days instead of 45. That’s small enough for the retailer to see value but still better than waiting over a month for cash.
In 2025, if your early payment program still relies on emails, Excel sheets, and 47 PDF attachments, it’s already doomed. The entire process needs to be frictionless, ideally embedded within the ERP or procurement system.
- Automated invoice verification
- One-click early payment request
- Real-time status updates
Use Case:
A supplier logs into their portal, sees eligible invoices, clicks "Get Paid Early," and boom—cash lands in their account in 48 hours. No paperwork, no back-and-forth emails, no wondering if Dave from Accounts Payable is still on vacation.
The worst thing a company can do? Launch an early payment program without ensuring they actually have the liquidity to support it. It’s like offering "Unlimited Pizza Fridays" and running out of cheese by noon
Early payments can be funded internally (from the buyer's balance sheet) or externally (via third-party financing, such as supply chain finance providers or banks). The key is ensuring that funds are always available when suppliers opt in.
Use Case:
A corporate buyer promises suppliers they can get paid early, but three months in, their working capital dries up. Suddenly, early payments are "paused"—and suppliers lose trust. A company that secures external funding sources (like BillMart’s B-SCF, for example 😉) ensures this doesn’t happen.
Suppliers aren’t mind readers. If they don’t understand:
- How much early payment will cost them
- When they’ll actually receive funds
- Whether participation locks them into a long-term deal
…they simply won’t engage. A successful EPP lays out everything in plain language—not buried in 10 pages of legalese that only a contract lawyer would enjoy.
Use Case:
A tech startup signs up for an early payment program but later realizes that opting in automatically applies to all future invoices (oops!). A transparent, supplier-friendly EPP would allow them to pick and choose rather than force an all-or-nothing commitment.
You can have the most sophisticated, AI-powered, blockchain-driven early payment system ever—but if suppliers don’t trust it or find it useful, it’s just a fancy dashboard with zero participation.
Successful programs actively educate suppliers, incentivize participation, and build trust.
Use Case:
A global retailer wants suppliers to join its EPP. Instead of just launching it and hoping for the best, they:
- Hold webinars explaining the benefits.
- Offer free trial payments to show how easy it is.
- Keep the process transparent so suppliers don’t feel they’re being financially squeezed into early payments.
Early Payment Programs should be a strategic advantage, not a gimmick. When built correctly, they:
✅Free up working capital for suppliers
✅Reduce financial risk for buyers
✅Strengthen buyer-supplier relationships
But if they’re complex, expensive, or inflexible, they’ll fail faster than a New Year's gym resolution. The companies that get it right—by focusing on flexibility, fairness, and seamless execution—will dominate their supply chains.
Want to make your suppliers love you? Pay them early. Want to make them hate you? Promise early payments and make them jump through hoops for it. The choice is yours.
