Treasury Solutions Spotlight
Supply Chain Finance
In our second Treasury Solution Spotlight, the spotlight is on vendors which offer a Supply Chain Finance solution for Corporate Treasury. Orchard Finance will periodically publish a new Solution Spotlight for different Treasury topics.
In the current COVID-19 crisis, your supply chain can be at risk due to businesses in your supply chain being impacted by illiquidity. At Orchard Finance we can analyze your supply chain in order to identify risk, review and optimize your supply chain, and help you select and implement an optimal supply chain finance solution. For more information about our Supply Chain Finance services please contact Bart Hendriks.
The next Spotlight will focus on Treasury Management Systems.
Disclaimer: All spotlights are based on the input provided by the vendors.
Case Study – A top U.S. retailer
Your supply chain is your most strategic asset. Ensuring always-on funding for your suppliers means greater support and stability across all levels. That’s why C2FO has launched Dynamic Supplier Finance (DSF) is a flexible funding option that allows third parties to fund early payment from enterprises to their suppliers.
A U.S. retailer with more than $130 billion in revenue and over 7,000 eligible suppliers wants to leverage its existing early payment programme, with additional solutions from C2FO. A subset of the retailer’s suppliers are pushing for preferential rates on their accelerated invoices. C2FO can address the large retailer’s needs with a combination of dynamic discounting (DD) and DSF. This enables flat or dynamic pricing for suppliers that’s funded from the company’s balance sheet or a funding partner, with the ability to turn funding on or off at any time. The flexibility of using its own balance sheet or a third-party funder enables the retailer to provide suppliers with working capital while also realizing EBITDA and margin improvements from the programme. The retail company can leverage alternative banking groups or funding partners within a day if needed, at competitive rates on the cost of borrowing.
An early payment solution like the C2FO programe can be a vital source of capital in times of growth or great difficulty. Arizona Bakery is one of many suppliers to this top U.S. retailer and they have turned to C2FO for much-needed cash flow during the current economic crisis. “With C2FO, I could go in and select what invoices I wanted to pull in and when I needed them,” Shelia Shaw, Arizona Bakery’s owner says. “It’s more convenient than a line of credit. It prevents you from having to take out that loan, it’s a lower interest rate and it’s a faster way to get funding.”
C2FO’s secure platform provides many tools to help your company manage dynamic working capital needs. Whether you want to drive cash flow or net profit, you can take control of your financial and sustainability goals while strengthening your suppliers and customers. Because plans and needs change throughout the year, C2FO offers the flexibility to use your own balance sheet, a global funding network, or both — without impacting your trading partners. The multi-currency and truly-global C2FO solution helps free trapped cash, fostering innovation and economic growth. C2FO is a leader in retail, industrial, manufacturing, energy, healthcare, technology, telecom and transportation sectors.
The C2FO platform is the only solution that allows you to launch differentiated early payment options for suppliers, blending patented Name Your Rate™ technology with traditional fixed rate offers to accelerate or lengthen invoice payments when your suppliers choose. Additionally, the C2FO platform allows you to accelerate or lengthen customer payments of your receivables on-demand through variable offers without permanent changes to your trade terms. For payables and receivables, you can leverage your balance sheet or utilize our global funding network without complex paperwork or onboarding.
Facevalue is a financial technology platform and specialist in working capital solutions and electronic invoicing. Facevalue buys outstanding accounts receivables, which it markets to global Investors.
Offering, Supplier & Buyer led invoice discounting with no hidden fees or subscription contracts.
Offering receivables finance to Suppliers and Buyers on a scalable basis at wholesale interest rates addresses working capital optimization for growing businesses of any size.
Facevalue has developed the first supplier-led invoice discounting platform aimed at providing suppliers working capital solutions at scale. This means that we compete on user experience as well as price point in transactional banking, credit and invoice management. With no fixed term commitment our clients are free to select which invoices they would like to sell and when.
Our technology has been evaluated and approved from a performance, security and compliance perspective and meets all regulatory standards.
View Facevalue's case study about their solution in retail here
Facevalue, the worlds most advanced supply chain financier, is a specialist in working capital solutions and electronic invoicing. Facevalue buy outstanding accounts receivables, which it markets to global Investors.
Supplier and Buyer led invoice discounting solutions (also known as Supply Chain Finance) are offered to businesses with strong track records at wholesale interest rates in collaboration with Bank and Investment partners across Europe. All accounts receivables are listed in a ledger within the client’s secure Facevalue online environment where they can freely choose which receivables they wish to sell and on which date they would like to receive payment.
Scalable, simple, working capital optimisation for growing businesses of any size with no hidden fees or subscription contracts at wholesale interest rates is a groundbreaking achievement.
Facevalue has developed the first truly supplier-led invoice discounting platform aimed at scale. This means that we compete on user experience as well as price point.
We integrate with each Supplier and not only the Buyer. Due to our deep credit and compliance insights and dynamic credit assessment capability of each trade pair, we are able to trade in unconfirmed as well as confirmed receivables. Formulating trusted credit insights and by extension access to capital at the correct corresponding price point, we can buy receivables at roughly half the cost of typical Factoring.
Facevalue offers conventional Buyer-led SCF whereby the principle integration is with the Buyer’s systems. The objective is to extract an IPU statement from the Buyer for a particular Accounts Payable. This can be issued by default in agreement with the Buyer, or on request from Suppliers.
The solution can function as a Dynamic Discount whereby the Buyer pays the Accounts Payable earlier at a discount rate, we negotiate with the Supplier.
NoviCap, a Barclays Techstars alumnus, was started in 2015 with the mission of digitising the SME finance industry by building the first SME-centric, fully digital and cost-effective invoice finance solution.
NoviCap is a tech-driven, customer-centric invoice finance platform which enables SMEs to finance their outstanding invoices and improve their cash flow. We stand for speedy customer on-boarding, instant risk assessment and pricing, and a generally superior user experience.
SMEs can access working capital in a fast and flexible way because of NoviCap’s intuitive front end, automated onboarding, and ability to make real-time credit decisions. NoviCap’s back-office runs at significantly lower overhead because of advanced automation in client on-boarding, data ingestion, and credit scoring and monitoring.
NoviCap has recently won two “Oscars” for the best SME Finance Provider of the Year and the Alternative Finance Platform of the Year at the Receivables Finance International Awards (RFIx) 2019 and 2020 respectively organised by leading industry body BCR in London.
PrimeRevenue, the leading provider of working capital financial technology solutions, helps more than 30,000 clients in 80+ countries optimize their working capital to efficiently fund strategic initiatives, gain a competitive advantage and strengthen their supply chain.
PrimeRevenue’s patented solutions provide sustainable cash flow optimization for companies around the world. Offering working capital solutions in accounts payable (AP) and accounts receivable (AR), PrimeRevenue’s custom program design and hands-on support ensure clients see material cash flow gains.
Supply chain finance, PrimeRevenue’s AP solution, enables customers of varying sizes to take control of cash flow and mitigate risk while protecting supplier relationships and supporting the supply chain.
Selective receivables finance is a flexible, cost-effective AR finance solution that allows companies to sell the receivables of their choosing to a funder for early payment.
Stenn provides innovative financing programs that create working capital cross-border trade. We improve cash flow and increase flexibility for exporters, intermediaries and importers. Stenn is based in the UK with offices in Europe, Asia and the Americas. Member of FCI, WOA, ITFA and IFA.
Stenn’s importer-led accounts receivable-factoring provides flexible and speedy working capital for cross-border trade. This liquidity and risk mitigation tool allows suppliers to get paid at shipment on international sales, while extending open account terms to their buyers.
Importer buyers can procure goods on payment terms without putting cash flow pressure on their suppliers. Importers receive goods and convert them to revenue without tying up availability under existing credit lines or outlaying cash.
Importer-led receivables factoring is a flexible and straightforward method for importers and their suppliers to optimize working capital and strengthen their relationships.
Taulia, a San-Francisco-based fintech, provides innovative supply chain solutions for buyers with revenue over $1B and their suppliers. A network of 2M businesses use Taulia’s technology and we annually process over $500B.
Taulia’s working capital solutions enhance well-known forms of financing, including supply chain finance and dynamic discounting by incorporating marketing-leading technology and dedicated support teams. Clients have experienced increased international reach with the capability to onboard suppliers of all sizes globally. Seamless integration into ERP systems and the flexibility to automate between bank-funded and self-funded early payments. Through Taulia’s platform, clients will be able to inject liquidity to strengthen their supply chain while simultaneously giving them more visibility and control over their cash, ultimately unlocking trapped working capital within their supply chains.
About the Treasury Solutions Guide
Please feel free to also look into Orchard Finance's Treasury Solutions Guide which we published. In our Treasury Solutions Guide 2020 we have combined profiles of providers that offer relevant technological solutions for Treasurers ranging from small Fintech companies to large established TMS suppliers.