BizPay helps resolve debt management difficulties
Debt and capital management is always a problem for enterprises in supply chains. VPBank's upcoming BizPay product is promising to be a breakthrough solution to solve this issue.
The market has seen the launch and integration of several new business models together with the continuous development of the economy. The chain business model has seen booming development and is becoming a popular trend, especially in retail and food services.
However, in addition to strong development, the market has seen the collapse of many brand names or those narrowing their scale. According to experts, the biggest reasons for failure of the chain-based business model are in operational management and financial difficulties.
H.A, a director from a cattle feed manufacturing company having some 30 agents at different levels said in addition to controlling product quality and employees, his company is having trouble managing debts as each agent has a different payment term.
“I have to appoint staff to manage the debt and remind managers at stores to pay monthly debts when the payment is due. In addition, I also need 3 more accountants to control debts and synchronise data in the company's system because there are many collections and spending,” he said.
He added that in addition to complicated debt management work, his company has also faced financial difficulties as agents are often in debt of their goods due to specific characteristics of animal feed products. Some agents even had debts in a quarter.
“Agents with good business results also need about 20 days after the company issued a VAT invoice. Others take more than 70 days if their businesses are not good. This makes my business often fall into temporary capital shortage,” he said.
Financial shortage has not only been an issue for businesses but also agents. According to the company’s agent, they sometimes had to borrow money with high interest rates to pay to avoid prolonged debts and ensuring prestige.
The market has been in need of a payment solution which could resolve the issue of capital and debt management for sellers while supporting cash flow to buyers.
BizPay – smart payment, effective business
To resolve the difficulties for businesses, especially small firms in the supply chain, VPBank has announced a new tool – BizPay which is a breakthrough payment solution benefiting both sellers and buyers.
With BizPay, buyers and sellers no longer have to worry about the payment schedule when the seller will receive money right after 48 hours of issuing VAT invoice, while the buyer will be supported by VPBank with zero interest rate up to 55 days. As a result, both buyers and sellers can make the most of the bank's capital for their cash flow, bringing the highest profit.
BizPay tool also integrates with business management software, helps to synchronize data and saves a lot of time in financial management and debt management. Specifically, BizPay will help enterprises automatically schedule receivables and payables, send real-time debt reminders and set up flexible payment types.
Due to modern design with friendly functions and interfaces, and ease of use, employees can use Bizpay anytime and anywhere with a 24-hour hotline system always ready to support. The cost for the accounting team is also minimised when the company applies this tool.
With a series of modern, convenient and automated utilities, BizPay promises to be a breakthrough solution to support debt management and resolve short-term capital needs of enterprises. VPBank's BizPay product is expected to officially launch in May 2019.