By: Editorial Staff, Date: May 30th, 2022
American Express moved strategically into the accounts receivable digital arena by partnering with Versapay this week. Versapay is already a well-known digital player in the A/R world between manufacturing buyers and their suppliers. American Express’ move combining their business-friendly card accounts with Versapay allows manufacturing supply chain participants to move and liquidate back and forth quickly, efficiently, and securely.
A big issue for suppliers has always been maintaining sufficient cash flow to take on the next big order. Significant outlays can be tied up waiting for fulfilled orders to get paid while a new order comes in and can’t be met due to short-funded capacity. With the American Express-Versapay partnership, suppliers will benefit from improved and faster payments. Buyers will find the collaboration to their advantage as well since there’s no need to fuss over exchanges and multiple wire transfer payments. Instead, payments are direct, party to party, and through a combined platform that both buyer and supplier share. That said, as A/Rs increase, more demand for automation and tracking becomes essential to make sure payments aren’t missed or forgotten.
Suppliers using American Express can leverage Versapay for collection management while offering a payment tool forum that buyers favor for security and financial stability as well as short-term financing of their acquisitions. As a result, both sides involved spend more time on manufacturing and less on securing or chasing payments to make the next production cycle deadline or payroll. Given the fundamental benefits, it will be surprising if the said partnership doesn’t evolve into an even larger positive environment for buyers and suppliers.