According to a company news release, the partnership will involve Previse embedding its early payment discount solution in Transcard’s SMART Exchange account-to-account (A2A) payment platform.
Previse uses artificial intelligence (AI)-driven technology that allows for payments to happen on day one that might have otherwise taken weeks or months. The solution uses billions of dollars of invoice data to automatically assess which invoices are likely to be paid and gives suppliers the option of getting paid immediately with the click of a button.
“Embedding Previse’s early payment discount technology into Transcard’s SMART solution suite makes it easy to accelerate payments to suppliers,” the companies said. “Suppliers submit their invoices as they do today. For invoices that suppliers have chosen to finance, Previse makes the payment, less a fee, ahead of the payment terms through Transcard’s SMART Exchange A2A payment platform.”
Transcard said finance payments are good for suppliers needing a cost-effective, reliable way to boost their cash flow. Buyers can provide quicker payments to their suppliers without affecting their balance sheets. And, if suppliers are paid faster, buyers can cut down on the number of queries they receive about the status of their payments.
“This partnership creates new possibilities in the trading workflows between buyers and suppliers,” said Transcard President Chris Fuller. “Suppliers access cash earlier and more efficiently compared to traditional financing options. And buyers can accelerate payments to suppliers, strengthen their supply chains, and share in financing revenues, without impacting their own working capital.”
In a recent PYMNTS ebook, Transcard CEO Greg Bloh spoke about the problem of companies using closed-loop payment networks.
“The result is inefficiencies, unnecessary complexity and risk across the payment lifecycle. Accounts payable (AP) and accounts receivable (AR) practitioners spend most of their time keying (and rekeying) data, shuffling paper and chasing down information,” Bloh wrote.