Tipalti said today it has upgraded its supplier payments automated solution with features that include early payments automation and multientity support functions. The San Mateo, Calif.-based firm also noted that the features are part of a new AP (accounts payable) hub designed to help streamline organizational processes.
The firm said new AP capabilities “give chief financial officers tools to modernize financial operations.”
The company said in a statement that the product announcements “provide finance leaders with the ability to easily extend early payments to their suppliers, to efficiently and compliantly manage a multientity AP organization, and to streamline their entire end-to-end AP and payments workflow in one complete console with their new AP Hub.” Tipalti claimed this is the first cloud-based platform to “unify these capabilities within one holistic supplier payments solution.”
With the early payment automation feature, Tipalti said it enables finance teams to “pay their suppliers earlier than their originally agreed-upon due date (e.g. net 30), without negatively impacting the payer’s working capital.”
“While suppliers get their money sooner relieving them of cash-flow challenges, finance teams can generate revenue from discounts agreed to by the supplier in exchange for their earlier payment,” the company said in a statement. “Early payments revenue can subsidize critical financial operations modernization investments. The early payments solution is fully integrated into Tipalti’s end-to-end AP workflow, removing friction for both the payer and supplier to optimize the payer’s revenue potential from the program. Payers no longer need to negotiate with a third-party financier or manually secure lines of credit. Suppliers simply opt-in to the offering with a few clicks.”
The rollout of this feature comes as retailers and brands increasingly source products from a larger number of smaller suppliers, globally. The growth of online marketplaces is connecting brands and retailers in North America and Europe with vendors in Asia and South America.
Chris Brownridge, cofounder and ceo of GawkBox, described the Tipalti early payment feature as “the perfect competitive differentiator. We can pay our partners faster, their on-boarding and management is frictionless, and it directly generates revenue to reinvest back into our business.”
The addition of the multientity support feature is also driven by the complexities of today’s globally-sourced market. Tipalti said the feature “provides businesses with multiple subsidiaries, divisions and global business units the capability to manage these disparate accounts payable workflows while locking in consistent financial best practices, controls and reporting across the entire enterprise.”
Tipalti said this would include so-called roll-up accounting as well as payment reconciliation for various entities. “Each entity can also employ their own independent branding, unique payment options, invoice and tax workflows, payment routing, approval processes, and more, all managed from one central place,” the company said. “Businesses that have grown through mergers, acquisitions and global expansion can now access a single version of truth and employ master governance across their subsidiaries instantly.”
The company said all of the functions of AP and supplier payment processing is centralized in the AP Hub, which encompasses “supplier management and communications, invoice processing, global remittance, fraud detection and controls, tax and regulatory compliance, payment reconciliation” and the new features as well.
Chen Amit, Tipalti cofounder and chief executive officer, said the goal of its automated solution and added features is to allow cfos to focus on globally growing their businesses.