BillMart | Early Payment Finance | Boost Supplier Relationships with Timely Payments

Early Payment Finance (EPF)is a trade financing product designed to bridge the gap between a distributor (seller) and a retailer (buyer) by providing flexible payment options. It enables retailers to manage their cash flow while incentivizing early payments and offering credit terms if needed.

How Early Payment Finance Works?

Buyer requesting for goods or services from the Supplier (Anchor).
The Supplier (Anchor) put forward funding request from financer based on accepted invoice(s) and due date period agreement with Buyer.
Based on validation of the transaction for parameters like operational limit availability, validity of invoice, etc. financer is instantaneously processing for disbursement by considering the interest parameter into the Supplier’s (Vendors) account.
Here, financer magnetise buyer by offering discounts if repayment done by buyer before invoice due date.
By considering the early payment benefits schedule, buyer processes for repayment to the financer on or before due date.

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Frequently Asked Question (FAQs)

1.What is Early Payment Discount?

Early Payment Finance is a supply chain finance program offered by the Anchor/Distributor/Seller to encourage their retailers/buyers to pay their invoices ahead of the due date. Also known as Early Payment Discount, this program incentivizes buyers to settle invoices before their due date in exchange for attractive discounts.
2.Who is eligible to join the Early Payment Finance Program?

All distributors working with registered retailers are eligible for the program. We support onboarding for distributors across various business sizes and financial backgrounds.
3.What is the Subvention Period, and how does it affect me?

The Subvention Period is the initial timeframe where you give discount to your retailers (e.g., 0–30 days) and where the financer pay you upfront, minus a subvention interest. This helps you access funds sooner without waiting for the retailer’s payment.
4.What is Subvention Interest, and how is it calculated?

Subvention Interest is a fee charged by Financer for advancing the invoice payment to you. It is calculated as a percentage of the total invoice amount. For example, if an invoice of ₹100,000 has a 5% subvention interest, ₹5,000 will be deducted, and you’ll receive ₹95,000 upfront.
5.Can I offer customized payment terms to different retailers under the program?

Yes, as a distributor, you can tailor payment terms within the Early Payment Finance guidelines. You may offer specific credit periods or discount rates depending on your relationship with each retailer and as agreed with Financer.
6.How does the program handle credit limits?

As agreed with the Financer, the credit limits are set at onboarding and can adjust based on performance. Retailers with consistent payment behaviour may see their credit limit increase over time, while delayed payments may result in a decrease as per the preference of Financer.
7.Is collateral required for Early Payment Finance?

No collateral is required.