Digital Guarantees

Your customized and innovative payment protection

With the Supply Chain Finance tools Dynamic Discounting and Reverse Factoring, buyers provide their suppliers with the possibility of generating liquidity on the basis of accepted invoices. However, suppliers are also keen to reduce the payment risk of the buyer and therefore often secure receivables through credit insurance. Credit insurance is often cost-intensive, somewhat inflexible or only available to a limited extent. With Digital Guarantees, Traxpay enables buyers for the first time to provide suppliers with an on-demand, secure and cost-effective alternative to hedge payment risk by issuing payment guarantees.

The buyer provides the supplier with a guarantee framework on the Traxpay Dynamic Financing Platform^©. Each supplier can individually determine, according to actual needs, the amount and term of the payment guarantee, which is provided by the buyer’s bank within a few days. Particularly advantageous is the fact that the application or issuance of the guarantee does not depend on the acceleration or sale of invoices. Suppliers participating in a buyer-initiated SCF program receive the assurance that if the supply contract is properly fulfilled, the invoice will be paid in any case, whether they choose to use the option of early payment or wait until the invoice is paid when due.

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