5 Ways Vendors Drive Bottom Line Savings with Quartix
When it comes to accelerating payments of a sponsoring client, Quartix puts vendors like you in the driver's seat by offering you a flexible early payment app. How do vendors take advantage of this optional tool? Let's take a look.
Vendors that sign up to Quartix start getting offers to accelerate payments of the sponsoring buyer that invited them to Quartix.
Quartix helps vendors better manage their cash flow, but this benefit is far from being the only one for subscribed vendors.
Let's take a look at 5 different ways vendors use Quartix to optimize cash flow, reduce operational costs and even increase sales.
Use case I: Overcoming seasonal peaks or cash flow gaps
This is indeed one of the most common ways vendors use Quartix today. Many Vendors accelerate payments during peak season - when their invoice flow tends to peak - or whenever they experience a sudden, unexpected cash flow gap. In some cases, the cash flow was predicted and Quartix was identified as a way to mitigate the temporary need for extra cash.
Quartix is 100% optional and incurs no costs if a vendor does not accelerate a payment - allowing vendors to keep a tight control over their spend by avoiding payments acceleration during low season and whenever there's no need for extra cash.
Use case II: Securing a backstop to bank lines
Quartix is an unsecured, uncommitted financing channel. It does not conflict with, but rather compliments secured bank lines.
Accelerating a payment via Quartix means selling it the invoice on a non-recourse basis, eliminating the receivable from the balance sheet without incurring new debt.
This is a great way for vendors to obtain a backup / alternative to their bank lines at no extra cost.
Use case III: Simplifying collections
Vendors that use Quartix get paid digitally - via an ACH / wire transaction. This means no more waiting and processing paper checks.
In addition, using Quartix helps vendors to guarantee collections (eliminating risks) and reduce other cost elements involved in collecting invoices that are (past) due.
Lastly, Quartix allows vendors to receive a lump sum via a single payment instead of dealing with multiple, smaller payments
Use case IV: Being able to sell more
Some vendors have a capped credit appetite towards their clients. In this case, vendors might not sell as much as they could have to a client so they do not exceed that limit. Quartix allows these vendors to sell more.
When Quartix accelerates a payment, it buys the invoice from the vendor on a non-recourse basis (a “true sale”). This way, whenever the vendor exceeds its desired credit exposure, it may sell invoices to Quartix to stay below the limit.
Use case V: Gain transparency towards invoice approvals
Some vendors never use Quartix to accelerate payments (until they do... but that's a different story) but rather use it as a visibility / transparency tool to track the approval status of the invoices they issue the sponsoring buyer.
This way, if an invoice doesn't show up on Quartix, the vendor can call the buyer in advance of the due date to make sure the invoice was received or rectify any problem that prevented the invoice from being approved. This can save money, time and effort to the vendor.
Vendors of all sizes - from mom and pop shops to Fortune 1000 giants use Quartix to gain financial and operational flexibility that ranges from hard dollar savings to quality of life improvements. The ability to control costs and access cash quickly gives Quartix an edge compared to today's vendor early payment solutions.