B2B Finance and Loyalty Programs

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American Express have developed and excellent B2B Finance and Loyalty Program for SME and Large Corporates. For more information please contact: Don Williams tel: +61 3 9633 6423 or email: don.williams@aexp.com (APAC Region)

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B2B Finance and Loyalty Programs

  1. 1. B2B Finance and Loyalty Programs<br />2011<br />
  2. 2. Receivable Financing<br />Loyalty Program<br />AR Platform<br />KEY PILLARS OF AMEX B2B PROGRAM<br />Accelerated cash funding<br />Improved working capital<br />Innovative risk options<br />Unsecured line of financing<br />Off balance sheet debt solution<br />World leading payment platform<br />Closed loop platform<br />Ability to customiseplatform to Merchantand Customer needs<br />Integrated functionality for transactions fromMerchant to American Express<br />Automated payment of card account by customer (direct debit)<br />Leading global Membership Rewards Program<br />Program value & costs can be tailored to Merchant and Customer needs<br />Move focus from “Price to Points”<br />Program fully administered by American Express<br />
  3. 3. PROGRAM LEVERS<br />CASH FLOW TO CARDHOLDER<br />15<br />30<br />45<br />60<br />75<br />90<br />REWARDS<br />0<br />1<br />1.5<br />2<br />2.5<br />3<br />RISK<br />AMEX<br />Merchant<br />These examples are for illustrative purposes and is to be used as a guide only.<br />
  4. 4. PROGRAM LEVERS<br />CASH FLOW TO CARDHOLDER<br />15<br />30<br />45<br />60<br />75<br />90<br />CASH FLOW TO MERCHANT<br />0<br />15<br />30<br />45<br />60<br />90<br />REWARDS<br />0<br />1<br />1.5<br />2<br />2.5<br />3<br />RISK<br />AMEX<br />Merchant<br />These examples are for illustrative purposes and is to be used as a guide only.<br />
  5. 5. 30 Day Program<br />COMMON CASHFLOW MODEL<br />Supplier’s funded cash flow<br />CASH FLOW<br />Supplier 30 days from statement + late<br />Customer 30 days from statement<br />Supplier supplies throughout month<br />30 Days<br />30<br />1<br />Customer makes payment<br />Supplier sends statement to customer<br />These examples are for illustrative purposes and is to be used as a guide only.<br />
  6. 6. 45 Day Program<br />POTENTIAL AMEX CASHFLOW MODEL<br />Cash flow extended for your customer<br />Merchant/Supplierreceives payment<br />AMEX Funded Cash Flow<br />Supplier supplies throughout month<br />CASH FLOW<br />Supplier1 day<br />Amex44 days<br />Customer45 days + MR points<br />2<br />1<br />30<br />45<br />Supplier sends statement to Customer & Debits Card<br />Customer Payment to AMEX via DD<br />These examples are for illustrative purposes and is to be used as a guide only.<br />
  7. 7. 60 Day Program<br />POTENTIAL AMEX CASHFLOW MODEL<br />Cash flow extended for the customer<br />Merchant/Supplierreceives payment<br />AMEX Funded Cash Flow<br />Supplier supplies throughout month<br />CASH FLOW<br />Supplier1 day<br />Amex59 days<br />Customer60 days + MR points<br />2<br />1<br />30<br />60<br />Supplier sends statement to Customer & Debits Card<br />Customer Payment to AMEX via DD<br />These examples are for illustrative purposes and is to be used as a guide only.<br />
  8. 8. AMERICAN EXPRESS MEMBERSHIP REWARDS<br />Membership Rewards Program<br />Award winning Membership Rewards program<br />Awarded 5 Star Rating for Superior Value (2006, 07 & 09)<br />Benefit to customers on the Program:<br /><ul><li>1 Point for every dollar spent on the program^
  9. 9. Points do not expire*
  10. 10. No capping* on points
  11. 11. A customer spending $500,000 on the program will earn a minimum of 500,000Points</li></ul>^Subject to the terms and conditions of the Membership Rewards program<br />*As long as your account remains current and in good standing<br />100,000 Points<br />$1,000 Travel<br />$1,000 Travel<br />115,000 Points<br />$1,000 Voucher<br />$1,000 Voucher<br />
  12. 12. REWARDS CONCIERGE<br />VEHICLES<br />TRAVEL<br />ELECTRICAL<br />DINING<br />BUSINESS<br />1. Rewards Concierge offers an unparalleled personal concierge service using Membership Rewards points .<br />2. From organising business needs to sourcing insurance quotes, the service is customised to meet customers’ exact needs.<br />3. Rewards Concierge will search for what customers want, quote the points required, and then arrange it on their behalf. <br /> They also give customers a range of options to choose from.<br />Rewards Concierge is an invitation only service. There is typically no change for Rewards Concierge, although you are responsible for any purchases and /or shipping charges you authorise. Fees may apply for meeting and event planning.<br />
  13. 13. PROGRAM VALUE - BENEFITS TO SUPPLIERS AND CUSTOMERS<br />Benefits to the Merchant (Supplier)<br />Benefits to the Customer (Cardmember)<br />Cash flow funding<br />Customer loyalty<br />Off balance sheet debt solutions<br />Differentiation<br />Revenue growth<br />New & innovative marketing channel<br />Acquire new customers<br />Retain existing customers<br />Process savings<br />Extended payment terms- cash flow funding<br />Membership Rewards benefit- a well accepted loyalty currency<br />Dedicated account servicing<br />Automated payment process<br />Online reporting<br />GST compliant statements<br />

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