Bank of America Global Treasury
Services (GTS) Enhances Trade Payables Discounting Program
for High Volume Buyers
SAN FRANCISCO, CA, February 16, 2006 —
Bank of America Global Treasury Services (GTS) today announced
the integration of enhanced supply chain finance technology
and supplier outreach services, further enhancing its Trade
Payables Discounting Program. The Trade Payables Discounting
Program allows Bank of America clients to significantly reduce
working capital requirements and finance costs throughout
their supply chains, helping to strengthen operating margins,
improve cash conversion cycles and develop stronger supplier
relationships.
“Bank of America’s robust technology and enhanced
functionality provide all supply chain participants with greater
visibility into the cash flows associated with trade payables
which in turn drives reductions in working capital requirements
as well as finance and operational costs,” said Dan
Scanlan, senior vice president, Global Product Manager –
Trade, Bank of America.
Through the automated trade payables program, buyers can:
- Automatically upload invoice data into a secure, Web-based
platform.
- Provide suppliers with web-based visibility into the
cash flow associated with trade payables.
- Collaborate online with suppliers on credit memos and
other invoice offsets.
- Enable suppliers to obtain “on-demand” financing
at their discretion at the invoice level by requesting that
Bank of America discount their accounts receivable due from
the buyer.
- Settle all trade payables electronically.
Bank of America offers
a comprehensive payables presentment, discounting and financial
settlement service via a hosted technology solution delivered
in connection with PrimeRevenue, Inc. Clients provide
Bank of America with an electronic output from their accounts
payable system with approved payables data, such as payable
date and amount. This information is uploaded to a hosted
Web-based platform. At anytime, suppliers can log onto the
Web-based front-end system and view the amount and exact payment
date of approved receivables. Clients and their suppliers
can collaborate to determine the final invoice amount through
the posting of credit memos. The supplier finance component
then allows suppliers to sell these receivables to Bank of
America in order to accelerate cash flow.
Client suppliers may choose to receive cash for any –
or all – of these receivables at any point up until
the invoice maturity date. Suppliers receive 100 percent of
the value of the receivable less discount charges. The system
allows for different discount rates for different suppliers.
A supplier may choose to discount individual receivables rather
than an arbitrary bundle or simply wait to receive full payment
electronically at the end of the receivable term. A supplier
only pays a fee, the discount charge, if it chooses to discount
the receivable prior to maturity.
At the end of the normal payment term, clients remit payment
to a clearing account held at Bank of America. The system
then issues electronic funds transfer instructions, which
distribute payments to each supplier or to Bank of America,
if the supplier discounted the invoice. This eliminates check-processing,
wire and ACH charges normally associated with supplier payments.
Payment cycles are reduced to as little as 48 hours from current
terms. The solution leverages existing systems and processes,
with minimal changes to clients’ current business processes.
“Trade Payables Discounting is one component of our
full suite of financial supply chain services. This solution
can also be combined with our Purchase Order-to-Pay Service,
an end-to-end payables reconciliation solution for open account
and letter of credit transactions, allowing you to further
reduce the administrative effort associated with payables
management,” concluded Scanlan.
About Bank of America Global Treasury Services
The Global Treasury Services (GTS) division of Bank of America
provides integrated working capital management and treasury
solutions to clients that include multi-nationals, correspondent
banks, governments and global 1,000 businesses. GTS services
include treasury management, trade finance, foreign exchange,
short-term credit facilities, and global liquidity management.
Bank of America GTS is a leading provider in treasury and
trade services globally based on revenue, and an industry
leader in payments transformation.
About Bank of America
Bank of America is one of the world's largest financial institutions,
serving individual consumers, small and middle market businesses
and large corporations with a full range of banking, investing,
asset management and other financial and risk-management products
and services. The company provides unmatched convenience in
the United States, serving more than 38 million consumer and
small business relationships with more than 5,800 retail banking
offices, more than 16,700 ATMs and award-winning online banking
with more than 14 million active users. Bank of America is
the No. 1 overall Small Business Administration (SBA) lender
in the United States and the No. 1 SBA lender to minority-owned
small businesses. The company serves clients in 150 countries
and has relationships with 97 percent of the U.S. Fortune
500 companies and 79 percent of the Global Fortune 500. Bank
of America Corporation stock (NYSE: BAC) is listed on the
New York Stock Exchange.
About PrimeRevenue, Inc.
PrimeRevenue is a supply chain financial services company
that provides automated Supplier Finance, Payables Presentment
and Financial Settlement services to Global 2000 organizations
and their suppliers. When PrimeRevenue is part of an organization’s
financial supply chain strategy, costs throughout the supply
chain are reduced, working capital efficiency improved and
supplier relationships enhanced. Headquartered in Atlanta,
Georgia, PrimeRevenue has offices and customers throughout
the world. For more information on PrimeRevenue, visit www.primerevenue.com.
Reporters May Contact:
Connie Lee, 202.349.3639
Connie.Lee@RFBinder.com
Julie Westermann, 314.466.9559
julie.westermann@bankofamerica.com
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