Industry Today: Pandemic Ignites Supplier Demand for Early Payment

As suppliers seek new ways to accelerate cash flow, supply chain finance has become an attractive early payment option.

As the pandemic continues to impact supply chains around the world, the deacceleration of cash flow has many companies on high alert. In this respect, the economic impacts have leveled the playing field for businesses of all sizes across the supply chain. Sectors hit hardest have had to weather sustained cuts to revenues, supply chain disruption and slow payment cycles. Meanwhile, other sectors continue to experience increased demand. That’s positive news from a revenue perspective, but meeting this sudden uptick in demand comes with its own cash flow challenges as buyers and suppliers struggle to scale accordingly.

As we set our sights on economic recovery, new financial pressures arise with compounding effect. The pandemic has hastened transformation in many sectors, uncovered new opportunities for efficiency and innovation, and – in some cases – prompted companies to rethink entire operation and production models.

The post-pandemic business landscape will be different for many businesses, and now is the time for companies to prepare their cash flow strategy to recover from today’s challenges while anticipating the risks and opportunities to come.

This confluence of factors has led to soaring demand for liquidity as businesses – particularly suppliers – seek new options to financially fuel the business. Cash reserves are running out. The protections of government-led stimulus packages offer less coverage. Many suppliers are hesitant or unable to take on additional debt. That’s led companies to explore new liquidity alternatives that provide material, fast access to working capital without negatively impacting financial health. One alternative that’s gained considerable momentum is early payment programs.

Choosing the Right Early Payment Option

According to our data, supplier demand for early payment is strong and growing amid the impact of COVID-19. PrimeRevenue accelerated $53 billion in supplier invoices during the first half of 2020, with $10 billion in March alone. Of those suppliers participating in early payment programs, suppliers accelerated payment on 80 percent of invoices during the first half of the year, and 93 percent during the peak in March.

Even as most sectors gain momentum, demand remains strong – an indicator that many suppliers remain exposed to the financial risks of the current economic climate. Between March 1 and June 30, customers introduced 25% more suppliers across 43 countries to PrimeRevenue’s early payment solution compared to 2019.

The primary advantage of early payment – typically delivered as a buyer-initiated program – is clear: suppliers get paid sooner and improve cash flow. Buyers looking to offer suppliers early payment as a way to fortify the supply chain typically encounter three options – traditional discounting, dynamic discounting and supply chain finance. Traditional and dynamic discounting are similar in that the buyer receives a discount on an invoice if it’s paid before the maturity date. With dynamic discounting, that discount is adjusted based on how soon the supplier gets paid.

The third option is supply chain finance. In this model, businesses optimize payment terms to improve cash flow while simultaneously providing suppliers the option to receive early payment as soon as invoices are approved in return for a nominal finance charge. This is achieved without negatively impacting the buyer’s or its suppliers’ balance sheets. As a result, both buyers and suppliers have access to liquidity that would otherwise be trapped in the supply chain.

Another advantage of supply chain finance is it helps suppliers immediately inject much-needed liquidity into their businesses to navigate uncertainty, fluctuations in demand and forward-looking transformation initiatives. It’s worth noting this liquidity has a trickle-down effect even deeper into the supply chain as suppliers can turn around and more quickly pay their own suppliers. And, while some early payment options are only available to investment-grade buyers and their largest suppliers, supply chain finance is available to a much broader pool of buyers and suppliers regardless of size and geography – including non-rated, non-investment-grade businesses. That means more buyers can unlock more cash and provide early payment to a larger number of suppliers, especially to those that need it most.

Early payment will continue to be a useful tool for businesses as they navigate economic recovery and position themselves for future growth opportunities post-pandemic. For those companies that need immediate access to material liquidity without taking on new debt, supply chain finance is an option well worth consideration.

This article was originally published by Nathan Feather in Industry Today.

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Stephanie Wargo

VP, Global Head of Marketing

Stephanie joined PrimeRevenue in 2015 and oversees the company’s global marketing team and strategy. With a data-driven approach, Stephanie focuses on demand generation and thought leadership to drive brand awareness, strengthen client/partner relationships, and generate new sales opportunities. Stephanie has guided PrimeRevenue through new technology releases and an evolving FinTech landscape. In addition to leading PrimeRevenue’s internal and external communications, she implemented innovative demand generation and marketing strategies to enhance the company’s overall sales pipeline.

Stephanie has extensive experience in marketing and customer success. She previously served as Vice President of Marketing and Communications at BitPay and Vice President of Client Relations and Marketing at FirstView Financial. Stephanie earned a B.A. degree in Political Science from Agnes Scott College in Decatur, Georgia.

Brian Medley

VP, Global Head of Sales

Brian joined PrimeRevenue in early 2012, after more than 20 years of sales leadership, executive-level consultant and business growth experience. As VP, Global Head of Sales, Brian leads a growing team of fintech sales professionals with a focus on developing strong customer relationships, improving sales predictability and helping PrimeRevenue enter the lucrative mid-market.

Prior to PrimeRevenue, Brian honed his enterprise software sales leadership skills at Clarus Corporation. He also served as an operations and IT management consultant for Kurt Salmon Associates. In addition to his sales and consulting background, Brian has deep experience in the financial industry having founded a successful residential mortgage broker and lending business. He is a graduate of the Georgia Institute of Technology having earned a B.S. in Industrial Engineering and Economics and M.B.A. in Global Business.

Jason Green

SVP, Global Customer Success

Jason joined PrimeRevenue in 2021 following more than two decades in the fintech/financial services industry. He brings a strong background is sales leadership due to his impressive relationship building capability as well as a successful track record in creating structure and process improvements. In his role, Jason uses his keen attention to detail to strengthen the customer experience and enhance the company’s solutions to deliver more value to clients.

Prior to joining the company, Jason held several senior level and executive roles with a focus on building and scaling sales and support organizations at both large and small companies. Jason graduated from Murray State University with a B.S in Marketing.

Matt Ford

SVP, Global Product Innovation

Matt joined PrimeRevenue in early 2015 and is responsible for overseeing all commercial, strategic and operational aspects of PrimeRevenue’s supply chain finance offerings throughout EMEA, based in Prague. He has been instrumental in gaining global alignment and developing supplier enablement processes for the region.

Matt joined PrimeRevenue following a 15-year career at Morgan Stanley, where he worked in fixed income operations covering debt syndication through bonds, EMTNS, corporate loans and other debt securitization. Notably, he set up non-core location operations in Europe (Budapest) and all lending operations in Baltimore from scratch.

Matt, who was born and raised in South East England, earned a B.S. in Sports Science at University of Teesside where he mastered the art of TEAM development and accountability as a youth international rugby player.

Dominic Capolongo

EVP, Global Head of Funding

Dominic joined PrimeRevenue in 2016, and is responsible for leading our bank and capital markets funding strategies and execution. He focuses on building global, scalable and highly efficient funding structures that maximize options for supporting PrimeRevenue’s programs. Dominic began his career as an attorney and was a partner with Kaye Scholer before joining DLJ as a senior banker. Dominic brings tremendous strategic and capital markets experience in all areas of finance having held senior positions at, among others, Credit Suisse and RBC Capital Markets in addition to DLJ. Dominic earned a JD from Fordham University School of Law and a BA from SUNY Binghamton.

Gavin Cicchinelli

Chief Operating Officer

Gavin joined PrimeRevenue as Chief Operating Officer in 2021. With more than two decades of leadership and executive experience along with a deep understanding of the payments space, Gavin provides a unique focus on improving and strengthening operational strategies and implementing GTM growth execution. He is responsible for leading transformation across corporate and operational strategies as well as building a repeatable and scalable commercial growth strategy that aligns with PrimeRevenue’s core business while delivering key adjacent growth opportunities.

Prior to joining PrimeRevenue, Gavin served as President and Chief Revenue Officer of Integrated Solutions at TSYS, a global payment processing services company acquired by Global Payments (NYSE:GPN). There, he also served as Head of Product and divisional COO. Throughout his career, Gavin has held multiple leadership positions including VP of Sales, SVP of Business Development, and President of Financial Institutions. Gavin graduated from the University of Northern Colorado, Greeley.

David Quillian

Chief Legal Officer

David joined PrimeRevenue as General Counsel in 2007. He and his team have been instrumental in successfully creating the unique legal structures that support PrimeRevenue’s multi-funder model and global funding capabilities. David is also the lead named inventor on PrimeRevenue’s two patents for Electronic Time Drafts, which allow PrimeRevenue to manage supply chain finance programs using electronic negotiable instruments as opposed to accounts receivable. Prior to PrimeRevenue, David was General Counsel at Harbor Payments, which was acquired by American Express (AXP) in 2006, and Magnet Communications, which was acquired by Digital Insight (DGIN) in 2003. He holds degrees in Economics and History from Duke University, and Juris Doctor and M.B.A. degrees from the University of Georgia.

Nathan Feather


Nathan has successfully ushered PrimeRevenue from our very early days as a visionary startup, through the financial crisis to today’s position as a thriving mid-sized leader in the cloud-enabled supply chain finance marketplace since joining PrimeRevenue in January 2006. He was instrumental in recapitalizing the company with an $80M investment led by BBH Capital Partners in 2015. Prior to PrimeRevenue, he held various financial management roles with Ariba, Freemarkets and PriceWaterhouseCoopers. Nathan holds a BS in Accounting from Pennsylvania State University.

PJ Bain


PJ has an impressive and accomplished track record as an enterprise software entrepreneur and executive. PJ has built a solid record of success with PrimeRevenue since being appointed Chief Executive Officer in July of 2009. The company has received numerous awards for growth, customer service, innovation, along with being recognized as a top employer.

PJ is a life-long software and technology entrepreneur having been involved in numerous firms in the roles of founder, executive, advisor and investor. Immediately prior to PrimeRevenue, PJ was the VP and General Manager of Exact Holding N.V. (NYSE/AMS: EXACT), a leading global provider of business software solutions. He was previously Founder and CEO of Inspired Solutions, an Atlanta-based, B2B software and services firm that grew to be the largest reseller of Exact Software in North America, later acquired by Exact. PJ holds a Bachelor of Industrial Engineering from Georgia Institute of Technology.