Supply chain finance (SCF) is a financial technology that accelerates payments to suppliers. It does this by consolidating supplier payment information onto a single platform, which can be integrated into the buyer’s enterprise resource planning (ERP) system or operated independently. The buyer looks at its outstanding invoices and selects the ones it would like to pay early. These are uploaded to a system, which the bank and the supplier can access.
BBVA
BBVA has collaborated with Demica, one of the leading working capital fintechs, to create a cloud-based global SCF platform that optimizes corporate clients’ working capital while helping improve their suppliers’ financial health. The platform features a centralized view of programs and suppliers in different locations and currencies; standardized contracts with a simple onboarding tool for suppliers; secure connections integrated with the treasury system and adapted to the client’s business processes; and internal control thanks to the total tracking of invoices and payments.
The platform is designed to offer the best possible experience for buyers, suppliers, and supply chain finance software. Suppliers can choose to do nothing and wait for their invoice to be paid on the original payment terms, or they can sell their receivables in exchange for an advance payment on their accounts payable (which will be posted on the platform) or in the buyer’s treasury management system. The buyers can also use the platform to extend their own payments to their suppliers.
Incomlend
Many large companies have supply chain financing programs to ensure that their suppliers receive payment quickly. These programs can be difficult to access for smaller suppliers in emerging markets with lower shipped volumes and the highest compliance costs. These programs are usually implemented by buyers who determine which suppliers can participate and how quickly they can receive payments. These programs can also limit the amount of cash available to suppliers and may require a high discount rate.
Incomlend is a global invoice financing marketplace that connects businesses with private capital. Its platform rapidly qualifies invoices and matches them with industry-leading private investors. It also provides a single point of record for all transactions and allows suppliers to monitor finance submissions and transaction status. Dimitri Kouchnirenko, the co-founder and CEO of Incomlend, believes that digital supply chains can help companies increase their liquidity and maintain cost competitiveness. He is committed to making Landscape the technology partner of choice for banks and independent funders operating in the invoice finance, factoring, and supply chain finance markets.
C2FO
C2FO provides an innovative solution that enables companies to monetize their supplier invoices, accounts payable and cash. Its platform brings together buyers and suppliers in a live marketplace without intermediaries to find a real-time rate for liquidity. This dynamic discovery model lets companies unlock working capital trapped in their AP or AR and enables them to optimize their supply chain. Unlike other providers, C2FO’s DSF program allows buyers to use their own balance sheet or funders in the C2FO network. This increases flexibility for suppliers and enables them to access funding at rates that work best for them. It also allows buyers to meet environmental, social and governance (ESG) targets.
Sarda is focused on expanding C2FO’s footprint in APAC and making the solution more relevant to local markets. He believes that this will require a combination of business development and direct sales efforts. He will focus on leveraging partnerships with large corporations, banks and governments to drive demand.
Traxpay
cash management in corporate banking is a new way for buyers to improve working capital and support suppliers, especially those without credit. It is also a great alternative to trade credit insurance, which can be expensive or not available at all. Demica offers SCF solutions for a wide range of business situations, including non-investment grade programs. They provide a unique combination of innovative structures, technology platforms and scalable services that can be customized to fit each client’s needs.
SCF helps corporate buyers reduce their financing costs by accelerating payment to key suppliers in exchange for discounts, while providing sellers with greater visibility into future cash flows and the ability to use cash sooner. In addition, it can help to reduce a company’s risk and liquidity exposures.
Traxpay is an industry-leading supply chain finance platform that enables buyers and suppliers to trade receivables in a safe, secure and simple manner. The platform is bank-friendly and allows for the inclusion of other products, such as digital guarantees. Its digitized forfaiting process is highly efficient and transparent for both parties.
Conclusion
Supply chain finance software has revolutionized the way businesses manage their financial relationships throughout the supply chain. By automating processes, enhancing transparency, and optimizing cash flows, these solutions are helping companies to operate more efficiently and strengthen their supplier partnerships. The future of supply chain finance software holds exciting opportunities for businesses seeking to enhance collaboration, reduce costs, and drive growth.
