The Benefits of Extending Terms with Suppliers

A few years ago, Whirlpool Corp. made a push to get extended payment terms from its vendor base. Instead of the prevailing 60-day terms, the Michigan-based appliance maker wanted to pay its suppliers in 90 days.

The benefits of such an arrangement to Whirlpool are obvious, as is the pain it could cause to many in its supply chain. After fielding some objections from its vendors, Whirlpool set up a program with PrimeRevenue that pushed back its payment schedule while at the same time getting its suppliers paid quicker and on favorable terms.

“It’s been an incredibly simple system,” says Eric Burge, an accounting manager at NIS Inc., a Davenport, Iowa-based company that does sub-assembly work for Whirlpool.

Ten days after NIS ships product to Whirlpool, its invoices are uploaded to PrimeRevenue, which provides a technology platform that brings together buyers, suppliers and funders—banks and non-bank companies that finance the supply-chain deals.

“At that point,” Burge says, “we have the ability to sell any or all of those receivables. We can sell all the invoices automatically or we can specify a dollar amount to be sold or we can manually choose which invoices are to be sold.”

Selling the invoices involves transferring them to the funder—in this case Wells Fargo Bank—at a discount. The magic of the process is that the financing is based on Whirlpool’s size and credit, yielding a lower interest rate for smaller suppliers like NIS.

“Trading partners increasingly want to transact on open accounts,” says Chris Bozek, head of Global Trade and Supply Chain Finance at Bank of America Merrill Lynch. “In transactions like this, suppliers are able to get cash from receivables early on and buyers are able to extend their payment terms while keeping their suppliers’ well-being in mind.”

Supply-side deals represent the traditional and most frequently seen species of supply-chain financing, notes Enrico Camerinelli, senior analyst at the Aite Group, a financial industry consultancy. “A large, credit-worthy, financially solid anchor company is able to provide a solution that helps its suppliers,” he says. But, he notes, financing schemes can be worked out at any stage of the supply chain, from procurement through shipping and distribution.

In the case of inventory financing, the bank typically purchases the goods that a manufacturer buys from its suppliers. “They go into a warehouse held by the bank,” Camerinelli explains. “When the company needs product for its manufacturing process, the bank resells the goods to the company. From a balance-sheet perspective, the value of the inventory is not sitting on the books of the buyer but on the bank’s.”

With distribution-side financing—an infrequent arrangement, according to Camerinelli—the manufacturer is essentially put in the position of a supplier with respect to the next link in the supply chain, which could be wholesalers or retailers, for example. “The objective is to cash in as early as possible,” says Camerinelli. In this case, it is the supplier that anchors the deal, enabling favorable financing terms to its customers.

PrimeRevenue, a 13-year-old company headquartered in Atlanta, has attracted 60 bank and non-bank funders to a cloud-based technology ecosystem that automates supply-chain financing.

“The system works to free up cash for large companies that have large and complex global supply chains,” says Tom Roberts, the company’s senior vice president for Marketing, “and also works on providing cash flow improvements for their suppliers.” The company processes $100 billion in transactions for 20,000 customers on an annual basis and recently introduced a program targeted at mid-sized companies.

There is generally a primary funder and a back-up funder for each anchor company, but “this does not involve an auction process,” Roberts notes.

The beauty of supply-side financing is that smaller and weaker suppliers are able to play off the more robust finances of their larger customers. “The cost of capital of the larger and stronger company will be lower than a company with a weaker financial profile,” says Rob Stigall, sales manager for Global Trade and Supply Chain Finance at Bank of America Merrill Lynch. “This creates a great deal of value for the suppliers because they can access an interest rate tied to the stronger financial profile of the buyer and get paid earlier. This type of financing generally does not appear on their balance sheets as debt. The buyers’ payment terms also improve and the overall effect is to strengthen the supply chain and make that entity much stronger in the global arena.”

In the case of NIS, the interest rate it pays on its Whirlpool invoices is a full percentage point lower than if it arranged financing through its own bank, reports Burge.

Funders are attracted to PrimeRevenue’s platform for several reasons, according to Roberts. “Since the financial crisis, bank decisions have been driven by regulatory change and risk profile,” he explains. “The banks have restricted funding in certain geographies and asset classes and have pulled out of some markets altogether. Trade receivables represent an attractive asset class and the returns on these short-term loans are very good.”

In addition, Roberts adds, it would be expensive for a bank to replicate the kind of technology that PrimeRevenue offers. “They would be hard-pressed to stay ahead of where the market is going from a technology perspective,” he says.

For NIS, participating in the Whirlpool-sponsored PrimeRevenue program has provided multiple benefits. “It has alleviated bank reporting and auditing requirements and the expenses that go with it,” says Burge. “We haven’t been through a bank audit in years. At one point, we were spending close to $60,000 on bank audits alone.”

The staff time it took for auditing and reporting represented a quarter of a full-time employee over a year’s time. Without considering the favorable interest rate the company obtained thanks to Whirlpool, NIS gains a financial benefit of around $100,000 a year through its participation in the PrimeRevenue program.

NIS’s interest-rate benefit is even more dramatic. That, says Burge, comes out to “somewhere near a quarter of a million dollars a year in interest.”

Share on facebook
Share on twitter
Share on linkedin
Share on email

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.