2. An Introduction to basware financing services
Harold Bosse, Financing Services Marketing, Basware
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3. HOW MUCH Working Capital IS LOCKED IN the SUPPLY CHAIN?
Every day of DPO extension yields £16 million in cash for the Fortune 500 buyer
Every day of DSO reduction yields £180 million in cash for a £65 million supplier
Early payment terms can translate in a 36% return on capital for the buyer
Early payment solutions can reduce DSO by 80% for suppliers
25% of all bankruptcies are related to working capital shortages
51% of CFO’s see working capital and liquidity management improvement as one of their core responsibilities
Changed the template to the Solutions Space one.

4. the road to financial agility starts with A solid purchase-to-pay foundation
Do you have visibility into spend and contractual obligations to quickly respond to business change?
Are you already getting the best supplier discounts, or still suffering from chronic late payments and penalties?
Do your financial systems support working capital optimisation and business growth?
Are you controlling spend and optimizing working capital?
Do you have visibility into spend across operations?
Can you respond quickly to business change?
Are you getting the best supplier discounts?
But It‘s hard to manage cash flow to become finacially agile:
Disparate financial systems
Manual paper-based processes
Poor visibility into spend across the business
No shared KPIs between procurement and finance
Chronic late payments, penalties and missed discounts

5. The FINANCIAL SUPPLY CHAIN
PHYSICAL SUPPLY CHAIN
ACTUAL DELIVERY OF GOODS AND SERVICES
INFORMATION SUPPLY CHAIN
DOCUMENTS RELATING TO THE ABOVE
RFPs - Contracts
POs - Confirmations
ASNs - Invoices
FINANCIAL SUPPLY CHAIN
FINANCING AND WORKING CAPITAL

6. Payment friction in the supply chain
Suppliers want to get their cash faster
Buyers want to hold onto their cash longer
Both parties want to manage risk
Payment Friction
Buyers want to extend DPO
Suppliers want to reduce DSO

7. payment FRICTION calls for action
82%
of buyers agree on-time payment benefits
69%
of buyers would put cash to work
23%
of buyers automate discount capture

8. What is Working Capital optimisation?
Company value
Operating margin
Capital employed
Automated & fast discount capture
Direct impact on bottom line
Indirect tax compliance
Fixed assets
Working capital
Receivables
Payables
Payment terms
Fast process supported by efficient technology
Optimisation: Discount vs loan Interest vs CC
Matching
Payment terms
Fast process supported by efficient technology
Error free bills
Optimisation: Discount vs Interest vs Cash

9. more cash for growth
Every day of DPO extension yields £16 million in cash for the Fortune 500 buyer*
Dynamic Discounting can work out to a 36% return on capital for the buyer
80% of suppliers would offer a discount in order to be paid early
*Source: Bavelos Group
**Source: Creating Payment Energy 2014

10. THE JOURNEY TO FINANCIAL AGILITY
Working Capital Optimisation
B2B Networks
Purchase to Pay
Automated AP
THE JOURNEY TO FINANCIAL AGILITY
Basware Commerce Network
1,000,000 buyers and sellers
> 100 countries
$750 Billion per year
100 million transactions per year
Convergence of this area will fuel growth

11. Three core components to free up cash
Networked Purchase-to-Pay
Basware Commerce Network
Basware Financing Services
What world looks like when we’re done
E-invoice is de facto
Cloud is de facto
Basware equals E-commerce

12. THE JOURNEY TO FINANCIAL AGILITY
Activation
Automation
THE JOURNEY TO FINANCIAL AGILITY
Financial value can only be generated when Automation and Activation have been successfully deployed
Joint Financial and operational value
IT Integration facilitate Supplier engagement and activation
maximize utilization and value captured
The largest chunk of value will come from the finance. But it can only be captured if the Automation and Activation value have been unlocked first.
That is where Basware’s experience in onboarding suppliers becomes critical.

13. 3 ways to improve working capital1 2 3
Collect your receivables faster
Pay your supplier later
Pay your suppliers less

14. Source: ”Creating Payment Energy” PWC
How strategic is this Working Capital optimisation?
Focus
Value
Source: ”Creating Payment Energy” PWC

15. BASWARE FINANCING SERVICES
Multibank
B2B ePayments
Payment
Funding
DPO DSO optimisation
Dynamic Discount
Basware Commerce Network
Timing
Discount
Payment gateway
Supply Chain Finance

16. Financial agility powered by THE WORLD’S LARGEST OPEN COMMERCE NETWORK

17. THE NETWORK ENABLES flexible FINANCING
e-Invoices
BUYERS
SUPPLIERS
Payments