BIP - Buyer Initiated Payments
A new solution for Working Capital Optimisation
Increase the DPO (Days Payable Outstanding) and increase liquidity. For finance managers this presents a possibility to improve their financial ratios. Buyer Initiated Payments (BIP) from American Express give companies a web-based solution to have control over when they initiate payment for approved invoices.
Why do companies use BIP?
The solution enables companies to target an increase in DPO. With extended payment periods, cash is available to the company sooner and for longer. And given BIP is a bank independent solution the company’s capital resources can be diversified.
At the same time, the solution balances opposing payment interests between buyers and suppliers. American Express supports the supply chain, working with your existing commercial relationships to enable BIP payment.
What is Buyer Initiated Payments (BIP)?
BIP is an online payment platform. It can be integrated into your existing payment processes, requiring no resources for implementation and no need for installation of new software. Company specific billing and invoicing cycles can also be taken into consideration.
How easy is the BIP solution to use?
- You select those service providers/suppliers with which your company regularly makes substantial transactions.
- We connect the payment process between you and your service providers/suppliers, reflecting your commercial relationship.
- You, as buyer, initiate the payment of approved invoices – easy to do via the web-based platform.
- You can benefit from an extended payment period. Your service providers/suppliers receive the money after five banking days following authorisation.
What are the benefits to my company?
- Helps optimise your working capital by increasing the DPO.
- A bank independent solution to support working capital optimisation initiatives
- Boosted liquidity with extended payment periods
- Diversified capital resources and reduced need for external financing
- Extended payment periods for the buyer and accelerated payments for suppliers
Already today, companies from many industries are relying on the BIP solution from American Express. We are happy to provide you with references. Please use the contact form to get in touch.