Th is is the first of its kind in Southeast Asia.
United Overseas Bank (UOB) has launched the UOB Virtual Payment Solutions suite, a virtual accounts payable solution that aims to help companies raise their productivity and manage cost efficiently.
The UOB Virtual Payment Solutions suite enables businesses to pay their vendors and suppliers through a virtual corporate credit card account even if these parties do not accept credit card payments. The supplier receives payment immediately and the company making the purchase enjoys interest-free credit to help extend their cash flow for up to 90 days.
The UOB Virtual Payment Solutions also lessens companies’ dependence on manual processing as it automates the account reconciliation process, minimising human error and allowing redeployment of resources to focus on other areas of business.
“In the current economic climate, it is important for companies to be even more proactive in managing their cash flow and increasing productivity to ensure their continued growth,” said Eric Tham, Managing Director and Head of Group Commercial Banking. He added that more companies are now turning to technology to boost income as they grapple with rising business cost and a tight labour market.
In a pilot program with technology company NEC Asia Pacific (NEC APAC) and its 18 small and medium enterprise suppliers, the UOB Virtual Payment Solutions suite decreased the payment processing period from 60 days to fewer than seven days within receipt of invoices.
The accounts payable component within the UOB Virtual Payment Solutions suite is offered in partnership with Visa Business Solutions and Invapay, a UK-based financial technology company.
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