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Early Payment Solutions and Invoice Cycles

2/15/2022 Connor Sullivan

Supply Chain Spotlight - Prime Revenue

PrimeRevenue is a company dedicated to accelerating global commerce by streamlining B2B payments. More than 30,000 businesses worldwide make use of PrimeRevenue’s solutions to connect their financial supply chain through automated digital payments, increasing payment visibility, providing enhanced control, and improving cash flows.

Their article, Solving the Late Supplier Payment Problem, explains how the inflow and outflow of cash is the bread and butter of every business. Nearly every aspect of a company’s health, profitability, and growth potential relies on flows of cash. The question they have to answer is, what happens when inbound payments to customers/suppliers are interrupted or delayed? Looking at the volatility that has occurred in global supply chains over the past year or two is a perfect example of this issue.

Not surprisingly, companies are taking longer to pay their suppliers despite the economy recovering from the pandemic. On average, companies are taking 58 days to pay suppliers during the first quarter of fiscal year 2021, while the previous year was only 55 days. Looking at the complete fiscal year of 2020, the number increased to 62 days which was up 7.6% year-over-year.

The primary challenge companies were facing was late payments with their customers, where late invoice approvals and visibility on payments being their primary concerns. Around 60% of customers were having to be contacted up to 10 times per month to inquire about payment status, while around 10% had to reach out more than 10 times. The issue as to why this is happening has to do with major increases in demand for companies whose cash flows aren’t able to keep up with the increase in volume.

PrimeRevenue’s technology-led solutions are a highlight to the role they will play in solving the full scope of the problem. The first main solution they are providing is “Technology-led early payment solutions”, which includes: supply chain finance (also referred to as reverse factoring or supplier finance), dynamic discounting and accounts receivable finance. Each option gives suppliers flexibility to accelerate payment on their invoices. The second solution is called the “maturing payment solution”. This method allows the buyer to streamline payments to reduce the administrative burden and eliminates the risk of late payment to a supplier. Thanks to these solutions, PrimeRevenue’s platform is reducing the average payment cycle for suppliers down to 31.2 days after initial invoice dates and supplier payment receival an average of 36.1 days, nearly twice as fast as suppliers without access to PrimeRevenue’s early payment options.


Supply Chain Spotlight articles showcase companies that are offering innovative payment solutions to address pain points in the supply chain. If you would like to be featured, please contact us at


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