Community Banking Case Study Series Part 4 – The Boon for Not-For-Profit Businesses
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.
Type: $40MM Not-for-Profit
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.
ArtisPay Supply Chain Finance
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
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.
A founder of Artis Trade Systems, Jamie Clemons, CPA, started his career working in business risk consulting at Protiviti after attending the University of Arizona on an academic scholarship where he graduated Summa Cum Laude with dual degrees in Finance and Accounting. During his time in consulting, Jamie served clients in various industries including Airline, Banking, Software, Pharmaceutical, and Education among others.