Supply chain finance platform Traxpay (Traxpay GmbH) and ADVA (ADVA Optical Networking SE), a multinational telecommunications equipment provider, have expanded their collaboration with new tools for sustainable supply chain financing. ADVA has previously used the Traxpay platform in the area of Receivables Financing and now extended its existing supply chain finance program with Dynamic Discounting.
Through the early payment program Dynamic Discounting, the SDAX-listed company offers its suppliers the opportunity to be paid early in return for a discount. Suppliers can thus generate short-term liquidity if required, and ADVA receives a discount in return, thereby increasing its own profitability. In addition, as part of the program, ADVA will offer a more attractive interest rate to suppliers who meet ADVA’s defined sustainability criteria, thereby providing them with a financial incentive (“Sustainable Supply Chain Finance“).
“With Traxpay, we can access the full range of SCF instruments for both Receivables Financing and Payables Financing on a single platform – with maximum flexibility and minimal implementation costs,” explains Steven Williams, Director Treasury & Investors Relations at ADVA. “Traxpay’s support goes far beyond providing the platform, however. Traxpay takes a lot of the onboarding work off our shoulders and knows exactly how to select suppliers and approach them correctly. It was especially important for us to develop an innovative solution to further increase our sustainability activities.”
Until now, the process by which customers and suppliers discuss payment targets, discounts and deviations from agreements has been complicated and impossible to standardize. Through the Traxpay platform, the process is fully digitized, making it efficient and transparent for both parties. “The program is a classic win-win situation, because first and foremost the suppliers benefit from the Traxpay platform. For them, the use is free of charge and they also receive a valuable service: the suppliers immediately see the discount for the early payment of their invoices – and they can rely on the indication 100 percent, because behind the offer there is no marketplace, but a promise from their customer,” explains Sven Weissmann, CSO of Traxpay.