On July 11th, 2014, The White House announced an early payment initiative called SupplierPay to help small businesses get access to financing. President Obama selected a group of top executives from 26 of the largest U.S. companies, many of which are already using Taulia, to discuss the impact supplier financing has on the small business economy. This isn't new to us--we've been helping Fortune 500 companies pay their suppliers earlier for over 6 years. In this presentation, discover: -What exactly SupplierPay is and why it matters to the economy -The impact SupplierPay will have on your business -How you can easily get ahead

1. July 16th, 2014
What SupplierPay Means
for Your Business
And How to Get Ahead

2. Your Presenters
Joe serves as Chief Strategy Officer for Taulia, leading market intelligence
and working capital strategies. Joe is responsible for the company’s
global commercial planning efforts and provides in-depth analysis on
current and future market developments, product performance and SaaS
software markets. Joe holds a Bachelor’s Degree from Dartmouth
College, studying Business and Economics.
Joe Hyland
Lex is the co-founder of Greensill Capital, as well as a Crown
Representative and Senior Advisor of Her Majesty’s Government.
Previously, Lex was Managing Director and Head of Supply Chain Finance
for Europe, Middle East & Africa at Citibank, and also established and led
Morgan Stanley’s Supply Chain Finance business globally. He is also a
Solicitor of the Supreme Court of England and Wales and of the Supreme
Court of Queensland.
Lex Greensill

3. Current Market
Challenges that
led to
SupplierPay

4. The Situation
Large organizations have over $2.5
trillion in idle excess cash
Large Corporates
Small businesses are in need of cash
and have little to no access to capital –
the #1 challenge for small businesses
Small Businesses
Better Use of Excess Cash
Even with the excess cash, large
corporates are taking longer and longer
to pay their small business suppliers –
on average 55.8 days
There are 28 million small businesses in the
United States
They outnumber large corporates 1162 to 1
Small businesses produce about half of
private nonfarm GDP
Over 50% of the working population (120
million) works in a small business

5. Current Payables Cycle Doesn’t Make Sense
Supplier sends
customer an invoice
with net 60 terms
01 Supplier Invoices
Customer
Large businesses
using automation
software, can approve
invoices within days
02 Customer Approves
Invoice on Day 5
Even though invoices
are approved earlier,
buyers hold on
paying until 60 days
03 Customers Wait
Until Due Date to Pay
Suppliers, strapped
for cash, have to
resort to outside
financing to gain
capital during this 60-
day period
04 Suppliers Have to
Seek Financing

6. What Has Been
Done to Solve It

7. • Prime Minister met with some of the
largest companies in the UK who agreed to
support their supply chains by
implementing Supply Chain Finance (SCF)
• Asked corporates to use SCF to help
supply chain access credit and improve
cash-flow at a much lower cost
• The Government will also offer this to its
own suppliers
The Connection to UK Supply Chain Finance Scheme

8. The Connection to QuickPay
Supplier Pay is modeled after QuickPay, which requires
federal agencies to speed up payments to small business
contractors - with goal of paying within 15 days
QuickPay
QuickPay has expedited more than $220 billion in
payments to federal contractors and saved small
businesses more than $1 billion since 2011
Results
As part of the SupplierPay initiative, QuickPay has also
been renewed for federal small business subcontractors
Renewal

9. • Partnership launched July 11th, 2014 with
private sector to strengthen small businesses
• Initiative asks large corporations to pay their
suppliers early to increase cash flow through
the supply chain
• The President brought together 26
companies that have committed to
supporting their supply chain by pledging to
pay suppliers early
What is the SupplierPay Initiative?

10. SupplierPay
Objectives

11. What is the Goal of SupplierPay?
The goal is to close the gap between invoice approval and
payment to help small businesses avoid borrowing money
and access more capital to invest in new opportunities, new
equipment and new hiring
Program Objectives:
0 DAYS
invoice
5-10 DAYS
approval
60 DAYS
due date

12. Mitigating the Risks of SupplierPay
The White House recognizes there are impacts of implementing an early payment program
to comply with SupplierPay that have to be mitigated in order to create a win-win for
buyers and suppliers.
Corporate Concerns
Shrinking
DPO
Loss of
Cash Reserves
Unfavorable
Interest Rates
Only Target
Large Suppliers
There are solutions in the market that solve these challenges by offering buyers the choice
to pay their suppliers early using their own excess liquidity or the liquidity of a third-party
financial institution. This allows for:
Maintaining of DPO
Maintaining of excess cash
Flexible and favorable interest rates, much lower than alternative financing
Ability to offer early payments to entire supply chain

13. The SupplierPay
Pledge

14. SupplierPay Pledge
• The key to job creation, which fuels
growth, lies within the health of small
business. They make up half of GDP
and most of the jobs created in the US
• Access to capital, working capital
included, has and continues to
constrain their growth
• Large organizations can help through
early payments, meaningfully
contributing to growth and
employment
• This is a win-win as large organizations
can earn a strong return while
providing the liquidity that small
businesses desparately need
Overview

15. SupplierPay Pledge
Provide a Working Capital Solution to Our Small Business Suppliers and take active
steps to lower the working capital cost of small business suppliers through:
01: Find a Working Capital Solution
Paying suppliers faster than we
do today to reduce their capital
needs
Enabling a financing solution that
helps small suppliers access
working capital at a lower cost
OR…
Helps small business, but you need to
optimize invoice processing
By definition, reduces DPO and thus
your own working capital
Implement a financing solution and capture
discounts in return for providing cash more
quickly
If cash is not available, use third-party
funding
Use combination of both of these to
maximize return on cash and provide
competitive financing
Ridgid ”all or nothing” approach lacks
flexibility and elegance

16. The White House wants progress
to be publicized – opportunity for
positive PR and Corporate Social
Responsibility efforts
More around the initiative is
coming, in terms of additional
White House meetings and forums
to share learnings
SupplierPay Pledge
Strengthen supply chains and support small firms with the goal of driving impactful
follow-up action from the broader marketplace. To encourage support, we’ll highlight
tangible outcomes for our own efforts, providing visibility into our actions and
publicize key learnings in implementing this pledge
02: Share Best Practices

17. SupplierPay Pledge
We will implement this pledge in a manner that ensures our small suppliers are able
to take advantage of our commitment while minimizing new administrative or
operational burdens. We will define ”small supplier” and if we choose to offer these
solutions to the entire supply chain, we will continue to focus our efforts on the
small suppliers that will benefit most. We will not use our pledge to offer financing
as a means of extending payment terms with our current small business supplier
base.
03: Implement a Win-Win
Need to create your own
definition of ”small supplier”
Initiative specifcally focuses on
a solution for small suppliers –
ensure solution is able to
implement them
Small Suppliers
Extending terms can be used for those
not defined as ”small supplier”
Extended Terms

18. Challenge with Helping Small Suppliers
30-50
LARGEST
SUPPLIERS
Large SUPPLIER SIZE Small
Typical Supplier
Spend
Curve
Alternative
Financing
Interest Rate
Traditional
SCF
Segment that
SupplierPay Addresses

19. Creating the
Win-Win

20. Initiative Alignment & Creating the Win-Win
In a nutshell, Dynamic Early Settlement is the
offering of early payment discounts on
approved invoices awaiting payment. This
offers suppliers discounts calculated on a sliding
scale based on the number of days suppliers
choose to be paid early
With Early Settlement
Supplier Benefits
• Allows suppliers to get paid sooner
• Suppliers opt-in – allowing them to choose
when and what the discount is
• Provides better balance sheet
• Discount rates dramatically lower than
alternative financing
20 Days 40 Days 60 Days

21. Early Pay Quick Start Initiative
A successful early
payment financing
program up and running
within 100 days
Speedy Deployment
Assurance that 100% of
invoices will be offered for
early payment – with
flexibility of using your
own cash or 3rd party
funding
Every Invoice
All suppliers will be
eligible for early
payments, regardless of
size, spend or credit
worthiness
Every Supplier

22. QUESTIONS?