Solutions
Supply Chain Finance with Traxpay
Supply Chain Finance (SCF) enables companies to free up liquidity in the supply chain and reduce payment risks, thus performing active working capital management. SCF takes into account both the buyer and the supplier side and thus creates a “win-win” situation for all parties involved. Empirical studies have impressively shown that the positive effects can be maximised if as many actors in the value chain as possible have access to and use SCF tools.
Payables
Dynamic Discounting
Free liquidity is invested in the own supply chain and ensures an attractive and risk-free return.
Suppliers decide flexibly when and for which invoices payment should be accelerated. The earlier the payment is requested, the higher the Dynamic Discount. Suppliers benefit from an immediate inflow of liquidity and can thus reduce their financing costs.
Reverse Factoring
External liquidity is injected into the supply chain through selected financing partners.
Reverse factoring enables purchasing companies to extend payment terms. Through the purchase of receivables by selected financing partners, suppliers receive liquidity flexibly and in line with their needs.
Digital Guarantees
A tailored, secure and cost-effective alternative to trade credit insurance.
With Digital Guarantees, buying companies use existing guarantee lines with their banks to provide their suppliers with bank guarantees to cover payment risk. Issuing bank guarantees increases the attractiveness of dynamic discounting and/or reverse factoring programmes.
Receivables
Digital Receivables Purchasing
The sale of receivables releases liquidity that would otherwise be tied up.
The digital sale of receivables offers the possibility of generating additional liquidity quickly and conveniently. In addition, the non-recourse sale of trade receivables to financing partners can eliminate the payment risk of the debtors.
What’s next?
The advent of digital financial instruments and upcoming legal and regulatory changes in various countries have enabled us to take SCF solutions to a new level. We use negotiable trading instruments that have been used in paper form for hundreds of years to seamlessly combine the concepts of Dynamic Discounting, Reverse Factoring and Post-Maturity Finance.
You can read about the related industry initiatives here DNI – MLETR – TFD EXPLAINED IN BRIEF and keep an eye out for further updates on Traxpay‘s progress with it ARQIT AND TRAXPAY SIGN CONTRACT TO DELIVER MORE EFFICIENT, SECURE TRADE FINANCE
Any questions?
- Claus-Mário Büschelberger
- Senior Director – Corporate Clients EMEA
- +49 695 977 215 39