Turning Payment Terms Into Strategic Working Capital With Calculum

Could your company be paying suppliers earlier than its competitors and unintentionally financing their advantage?

In this episode of Tech Talks Daily, I welcome back Oliver Belin, co-founder and CEO of Calculum. Our previous conversation took place around ten years ago when Oliver was working with the Marco Polo Network and blockchain was attracting attention across trade finance. His latest venture concentrates on working capital, payment terms, and the role of AI in supplier negotiations.

Oliver explains why working capital has moved higher on the agenda for procurement, treasury, and finance leaders. Companies can generate cash through sales, borrowing, inventory efficiency, faster customer collections, or changes to supplier payment terms. With borrowing costs higher and sales growth difficult in many markets, businesses are examining the cash already tied up within their operations.

The difficulty is that procurement teams usually know their own supplier data but lack reliable information about the terms those suppliers accept from other customers. Negotiating without market benchmarks can lead to blunt policies, such as extending every supplier to 90 days.

Oliver warns that indiscriminate extensions can create serious consequences. Smaller suppliers may experience cash flow pressure, increase their prices, reduce service, or direct capacity toward customers offering better terms. The buyer may improve its balance sheet while weakening an important part of its supply chain.

Calculum uses transactional benchmark data to compare existing payment terms with the wider market. According to Oliver, the platform can show how frequently a supplier appears in its dataset, which terms it accepts elsewhere, and the probability that it will agree to a proposed change.

AI and predictive analytics can then help companies concentrate on the suppliers where an adjustment would create the greatest financial impact and carry a higher probability of acceptance. This is particularly useful when an enterprise has tens of thousands of suppliers and procurement teams can only negotiate directly with a small proportion of them.

Oliver says Calculum typically identifies free cash flow opportunities equivalent to approximately 8% to 11% of the spend analyzed. The amount identified does not automatically become realized cash. Procurement teams need targets, internal ownership, supplier conversations, and financing options to turn recommendations into results.

He shares the example of an unnamed Fortune 500 pharmaceutical company that generated $227 million in free cash flow over 16 months. The program combined market-aligned payment terms with Supply Chain Finance, allowing participating suppliers to receive early payment in exchange for a discount based on the buyer's financial strength.

Another UK company with approximately 4,000 suppliers generated €3 million in free cash flow within two months. Oliver attributes the speed partly to knowing which suppliers to approach first rather than attempting a broad, manual campaign.

We also discuss supplier protection. Calculum identifies whether a business is a small or medium-sized enterprise, examines ultimate ownership, and considers financial strength. A financially vulnerable supplier may need early payment support rather than longer terms.

Oliver's wider point is that AI cannot create reliable benchmarks from nothing. Useful predictions require traceable transactional data, clear objectives, and people prepared to act. Could better payment term intelligence improve your cash position while creating fairer, better-informed supplier relationships? Listen to the episode and share your thoughts with me.