Community Banking Case Study Series Part 4 – The Boon for Not-For-Profit Businesses

by | Apr 17, 2019 | Case Study, Community Banking, Series, Supply Chain Finance

In Parts 2 and 3 of this Series, we looked at how an ArtisPay Supply Chain Finance program furnishes your largest clients with valuable cost savings, instrumental operational efficiencies and provides your smaller and fast-growing companies with strategic tools to boost their A/P function and improve their supplier relations. In Part 4, we take a look at how ArtisPay serves as a significant boon to a not-for-profit business.

 

Client

Type: $40MM Not-for-Profit
Deposits: ~$1MM
Annual Payable: ~$30MM
Line of Credit Facility: None

 

Client Overview & Needs

This Client is a large not-for-profit organization that historically has not invested in technology and does not have a budget for treasury management or other technology that would improve the efficiency and effectiveness of the accounting and finance functions. The client presented with a wide array of needs including expensive outsourced payment processing, protracted invoice approval intervals, working capital strain and a large supplier network looking for immediate payment.

 

Solution

ArtisPay Supply Chain Finance

 

How

The client launched the ArtisPay program in 2 ways: 1) using supplier, electronically-submitted invoices (supplier-centric); and 2) using ArtisPay FastTrack allowing the client’s A/P dept to upload approved payables (buyer-centric) for the suppliers. ArtisPay moved the client from paper to an online/digital process, transferred payment processing to the bank from an accounting firm, and freed 20% of the controller’s time. The suppliers were put in control of their A/R by being offered an affordable and flexible option to convert their A/R to cash. The bank realized fee income from early payment discounts from suppliers – all while providing the SCF program to the client at no cost. The client established plans to use ArtisPay for more than 90% of their vendors.

 

Results for Client

  • Reduced administrative costs
  • Saved the Controller 8 hours/week
  • Provided QuickPay option for suppliers
  • Released $1.2MM in cash onto the balance sheet
  • Reduced invoice approval time by more than 50%
  • Reduced audit preparation time

 

Results for Bank

  • New fee income
  • Client retention & satisfaction

 

MORAL

Not-for-profits may be considered a “non-business” entity, but the fact is not-for-profits do a great deal of business. These organizations have operations, suppliers, income statements, balance sheets and objectives. ArtisPay allows a bank or lender to better serve these institutions whose aim is to be of service to others. With ArtisPay, not-for-profits can capitalize on advanced technologies (at no cost), gaining operational efficiencies and cost savings, thus creating a leaner, more effectual “non-business.” ArtisPay frees up capital for not-for-profits to dedicate to the service and purpose of the organization. ArtisPay equips banks and lenders with a compelling, valuable product offering that helps both businesses and “non-businesses” achieve their goals.