Saying it’s supporting businesses that are facing supply chain challenges and the rising cost of capital, finance automation platform and corporate card provider Ramp has added an option that lets businesses finance invoices on terms of 30, 60 and 90 days.
This new option is called Flex and has been added to the company’s Bill Pay accounts payable (AP) automation product, according to a Tuesday (Aug. 23) press release.
“We’re using everything we know about our customers to improve their financial management — especially important in times of volatility — by providing a platform where they can move money more easily and with more flexibility on working capital cycles, too,” Ramp Co-founder and CEO Eric Glyman said in the release.
PYMNTS research has found that managing working capital is a major area of improvement that mid-market companies have seen from digitizing AP and accounts receivable (AR) functions.
“Business Payments Digitization,” a PYMNTS and Corcentric collaboration, found that 84% of chief financial officers (CFOs) who accelerated payment process digitization could point to improved management of working capital when the projects were completed.
Ramp Flex is available to select customers now and will be offered more widely later, the company in the release, adding that the product is subject to credit approval and restrictions and may not be available in all states.
In practice, Ramp Flex pays customers’ vendors up front and, for a fee, lets customers choose to pay Ramp back in 30, 60 or 90 days.
“Non-tech businesses that rely on working capital will find particular value in Flex, which is designed to minimize their cash conversion cycle and optimize cash flow,” the company said in the release. “With Flex, businesses will no longer have to navigate a convoluted web of terms, conditions, fees and limits from vendors, banking partners and their own customers.”
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