supply chain finance - european banking association
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© 2013 PrimeRevenue, Inc. Confidential, distribution with permission only
Supply Chain Financing The PrimeRevenue Way
Brussels, 12th September 2013 Matthew Burns, Business Development Manager, EMEA
Confidential, distribution with permission only © 2013 PrimeRevenue, Inc. 2
DESIGN PROGRAMS
ANALYZE WORKING CAPITAL
EXECUTE WORKING CAPITAL
RESULTS
PROVIDE COLLABORATION
TOOLS
What we do & how we deliver
2
PRIMEREVENUE PROVIDES A SUITE OF SOLUTIONS TO UNLOCK LIQUIDITY & WORKING CAPITAL IN THE SUPPLY CHAIN
Optimise the Financial Supply Chain to dramatically improve Working Capital
efficiency
We help to unlock trapped cash on both sides of your supply chain
We improve Working Capital
by increasing payment terms
for Buyers
We improve Liquidity by
reducing payment terms for Suppliers BUYER SUPPLIER
Confidential, distribution with permission only © 2013 PrimeRevenue, Inc. 3
Why banks are looking at Supply Chain Finance?
Uncommitted Ability to re-price
Short tenors Good margins
Limited operations Almost riskless Access to buyer
Access to suppliers “Sticky Business”
CFO Message Strategic
Open Account Offering Cross Sell
Competition Hot topic
Working Capital Offering
VALUE TO FUNDER? WHY SELL IT?
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Why are we leading the Supply Chain Finance Market?
4
1 Our organization (sales & marketing, legal, software development) is 100% focused only on Supply Chain Finance.
2 We are true multi-banking platform and have no restrictions in terms of jurisdictions, currencies, credit exposure.
3 We have unique solutions used by our clients to analyze spend and onboard suppliers.
4 We are the “only” alternative compared to a bank Supply Chain Finance solution for clients
Confidential, distribution with permission only © 2013 PrimeRevenue, Inc. 5
Options to enter into the Supply Chain Finance Market
A B C
Setup your own SCF platform and operations
Participate in Bank SCF Program
Fund on the OpenSCi Platform
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+
-
Setup your own SCF platform and operations
A Platform
§ Direct Relationship with Buyer and Supplier § Full Control in terms of Collection and Credit
Risk § Positioning as “Lead Bank” in Supply Chain
Finance § Full discount fee from suppliers
§ Millions of USD Expenses not only IT, but operations, sales, legal, etc.
§ Full KYC checks required § Full onboarding required § Requires months/years to be operational
Options to enter into the Supply Chain Finance Market
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§ No direct relationship to Buyer, Supplier § Relying on first tier bank asset manager
to collect monies upon buyer default § No Fee transparency, Participation Fee § Mostly undisclosed to the Buyer § Position as ‘second-tier bank‘
+ § No discussion required in terms of legal agreements with Buyer/Supplier
§ No KYC checks required
-
Platform
Participate in Bank SCF Program
B
Options to enter into the Supply Chain Finance Market
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Fund on the OpenSCi Platform
C
§ KYC Checks required § Review of legal agreements (jurisdictions) § Operational and technical requirements
+ § Direct relationship with Buyer & Supplier § Positioning as ‘your SCF facility’ § Full transparency on pricing, no
participation fee § Disclosed to Buyer § Money flows directly to you § Still the possibility for a bank to
syndicate
-
Platform
PrimeRevenue Platform
Options to enter into the Supply Chain Finance Market
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The Best Option?
Why is C the best option?
Fast and cost efficient market approach to
SCF
Direct Buyer relationship and discussion on
pricing, credit limits
Full transparency on pricing and no hidden
participation fees
Direct legal agreements with
Suppliers
You can use your own platform, participate and fund on OpenSCi
We have one of the largest number of SCF
programs you can choose from
Our funding partners generated more than
USD 75m on OpenSCi in 2012
We generate on avg. 6 new SCF programs per year for our partners
Confidential, distribution with permission only © 2013 PrimeRevenue, Inc. 10
Additional Benefits
What are additional benefits?
Funding directly from Bank to Suppliers and
Buyer to Bank, not through PrimeRevenue
Tested and approved by over 40 funders (SOC-1
Audit)
KYC information collected by
PrimeRevenue as requested by Bank
No Software installation on bank
side
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Three Challenges in SCF – How to solve it?
CHALLENGE 1 § How much can I increase payment terms?
§ Which suppliers should I consider? § How much cash flow can I generate? § How can I communicate it internally?
CHALLENGE 2 § How can I make sure that my facility is in place in the coming years?
§ How can I be independent from funders?
§ How can minimize pricing?
CHALLENGE 3 § How can educate my procurement team?
§ How can I streamline and maximize supplier onboarding?
§ Which solution gives me a customized messaging to my trading partners?
Confidential, distribution with permission only © 2013 PrimeRevenue, Inc. 12
OpenSCi Overview
Educating stakeholders and onboarding your trading partners
Detailed Analysis of your Spend and Working Capital
Potential
Improving working capital for buyers
while reducing payment terms for
suppliers
Ability to reduce payment terms
without customers approving the
invoices
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Funder § PrimeRevenue sells, implements and supports the solution § Bank funds the buyer program § PrimeRevenue charges basis points to suppliers
Co-Marketing § PR and Partner Develop a Go-to-Market Plan § Partner and PrimeRevenue co-sell the solution § PrimeRevenue implements and supports the solution § PrimeRevenue charges basis points to suppliers
Reseller/White Labeling § Partner sells, implements and supports the solution § PrimeRevenue provides support to Partner § A number of different commercial models depending on the
partner’s goals and objectives and services requirements
1
2
3
Partnership Opportunities
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$3bn 2010
$4bn
2011
$5bn+
2012
$1bn 2008
$2bn 2009
PrimeRevenue Snapshot SUPPLIERS PROCESSED VOLUME FUNDERS CLIENTS/BUYERS NUMBER OF
TRANSACTIONS/MONTH
Transactions in 40 countries Available in 17 currencies No limitations in terms of jurisdictions, currencies, suppliers, invoices
Atlanta (HQ)
Paris London
Frankfurt Prague
Melbourne Hong Kong
Europe 2012 2012
Mon
thly
Tra
nsac
tion
s
14
Confidential, distribution with permission only © 2013 PrimeRevenue, Inc. 15 © 2012 PrimeRevenue, Inc.
PrimeRevenue – Q&A Discussion
15
Q A &
top related