Net 90 Day Terms - Streamlining Retail Inventory with Vendor Pay Express

Women's Threads Boutique (Sample Company), a mid-sized retail chain specializing in fashion apparel, relies on net 90-day terms with its vendors to manage cash flow and align payments with seasonal sales cycles. One of its key suppliers, Global-Trade Fabric Co. (Sample Company), provides high-quality textiles but faces cash flow constraints due to encumbered receivables and limited access to traditional financing. Global Fabric Co. cannot afford to wait 90 days for payment, risking delays in textile deliveries that could disrupt Trendy Threads’ inventory restocking and sales.

Women's Threads needed to maintain its net 90-day terms to ensure financial flexibility, especially during peak retail seasons. However, Global-Trade Fabric Co. required earlier payments to sustain its operations and meet upstream supplier commitments. Without a solution, delayed textile shipments could lead to stock shortages, missed sales opportunities, and strained customer relationships for Trendy Threads.

Vendor Pay Express can provide a tailored solution with its interest-free, unsecured credit line for Women's Threads, designed exclusively for vendor payments, and its fast, unsecured transactional payment processing for suppliers. This allowed Women's Threads to pay Global-Trade Fabric Co. early while preserving its 90-day terms, and enabled Global-Trade Fabric Co. to defer payment from Vendor Pay Express for 30 days, receiving funds on day 30 instead of 90 days.

• Invoice Submission: Global-Trade Fabric Co. issued a $75,000 invoice for a textile shipment, expecting payment within 30 days from Vendor Pay Express instead of 90 days from Women's Trheads.

• Platform Approval: Women's Threads approved the invoice via the Vendor Pay Express digital platform and will pay invoice in 90 day terms.

• Supplier Payment: Vendor Pay Express committed to pay Global-Trade Fabric Co. on day 30, providing unsecured transactional payment processing without factoring. Global Fabric Co. accepted a 5.6% early payment discount for an accelerated payment in 30 days and bypassing 60 days of waiting for payment, overcoming barriers posed by its encumbered receivables.

• Buyer Terms Preserved: Women's Threads utilized the interest-free credit line to defer its payment to Vendor Pay Express until day 90, aligning with its standard net 90-day terms and preserving working capital.

• Automation and Transparency: The Vendor Pay Express platform automated invoice uploads, approvals, and payment scheduling, ensuring accuracy and visibility for both parties.

• Interest-Free Credit for Buyers: Women's Threads accessed funds based on its trade history, D&B rating, and credit insurability, with no collateral required.

• Fast Supplier Payments: Global-Trade Fabric Co. received payment on day 30, bypassing traditional financing hurdles like factoring or lines of credit.

• Unsecured Processing: No asset pledges were needed, making the solution accessible for Global-Trade Fabric Co. despite its financial constraints.

• Flexible Terms: The 60-day deferral met Global-Trade Fabric Co.’s cash flow needs, while Trendy Threads retained its 90-day cycle.

• Supplier Stability: Global-Trade Fabric Co. received $72,750 (after a 5.6% discount) on day 30, stabilizing its cash flow and ensuring uninterrupted textile production and delivery.

• Buyer Efficiency: Women's Threads maintained its net 90-day terms, paying Vendor Pay Express $75,000 on day 90 without interest costs, preserving liquidity for inventory and marketing.

• Operational Continuity: Timely textile deliveries enabled Trendy Threads to restock inventory, meet seasonal demand, and avoid sales disruptions.

• Stronger Partnership: The solution fostered trust between Women's Threads and Global-Trade Fabric Co., encouraging future collaboration and potential for better pricing or terms.

• Streamlined Processes: Automation reduced administrative effort, allowing Women's Threads to focus on sales and customer engagement.

This case study showcases how Vendor Pay Express bridges the cash flow gap between buyers and suppliers with a flexible, interest-free solution. By enabling Women's Threads Boutique to uphold its net 90-day terms and providing Global-Trade Fabric Co. with early payment on day 30, Vendor Pay Express ensured supply chain reliability and operational success. The platform’s unsecured, non-factoring payment processing and support for suppliers with encumbered receivables make it a transformative tool for B2B transactions. For retail businesses and their suppliers, Vendor Pay Express delivers a scalable, cost-free way to "Get Paid Early, Your Way" while keeping vendors happy and businesses thriving.