38% of vendor survey respondents use prepayment to manage working capital, up from 19% in 2017

Taulia’s Latest Vendor Sentiment Survey Explores Five Years of Data, Changing Trends in the Payments Space and the Opinions of Nearly 80,000 Respondents

SAN FRANCISCO–(BUSINESS WIRE)–38% of respondents are making monthly prepayments in 2021, up from 19% in 2017, according to a supplier sentiment survey conducted by working capital technology solutions leader Taulia . Taulia Global Supplier Sentiment investigation has been conducted annually since 2017 and reflects the opinions of nearly 80,000 respondents over a five-year period.

Suppliers are increasingly interested in regularly receiving advance payment once an invoice is approved as an alternative source of financing. In 2021, a fifth (22%) of suppliers wanted to receive an advance payment each time for each customer, compared to 15% in 2017.

The reasons why the supplier accepted advance payments varied. In 2021, the main reasons for their interest in prepayments were*:

  1. Cash gap (49%)

  2. Predictability of receipts/payments (27%)

  3. Working capital requirement (21%)

  4. Ease of use (18%)

  5. Reduce DSO (7%)

There is also a clear progression towards better corporate behavior with a welcome drop in late payments, which fell from 45% in 2017 to 36% in 2021. The decrease in late payments reflects an improvement in automation and the will businesses to promote financial health.

Cédric Bru, CEO of Taulia, said: “The financial health of suppliers is paramount to building strong supply chains. These results speak for themselves when it comes to showing the progress being made in ensuring suppliers are paid the way they want – sooner or on time. This year has seen significant disruption to supply chains due to a wide range of external factors, but adequate funding should not be an obstacle.

“By working together, those at every stage of the supply chain can support the growth of their own business and that of others by providing choice, flexibility and consistency in compensation. We hope to see continued progress in this area for all sizes of business and know that by providing the best technology, we can actively help make these choices accessible to as many businesses as possible.

About Research

Taulia has conducted a supplier survey annually since 2017, with reports released the following year. During this period, 79,918 survey responses were collected worldwide. Survey respondents were contacted by email and varied by geography, job title and industry.

To read the full report, https://taulia.com/resources/supplier-survey-reports/supplier-survey-5-year-review/

*Note: Respondents to this question were offered multiple response choices, hence totals > 100%.

About Taulia

Taulia is a leading fintech provider of working capital management solutions. Taulia helps companies access cash related to their payables, receivables and inventory. A network of over 2 million businesses use Taulia’s platform to determine when they want to pay and get paid. Taulia processes more than $500 billion each year and is trusted by the world’s largest companies, including Airbus, AstraZeneca and Nissan.

For more information, visit www.taulia.com.

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