The supply chain finance platform Traxpay and Landgard are launching the new jointly-developed Traxpay program “Digital Guarantees” to secure against payment defaults. The guarantees are backed by their partner NORD/LB.
The producer cooperative Landgard already uses Traxpay’s financing platform with the early payment program Dynamic Discounting. This cooperation is now being expanded with the next step: For the continuous supply of liquidity, the hedging of payment defaults plays an essential role in the risk provisioning of suppliers. With the new guarantee concept in combination with the flexible generation of liquidity through Dynamic Discounting, the risk of non-payment is secured with a bank guarantee.
“With Traxpay’s dynamic financing platform, our suppliers have had the opportunity for several months to accelerate the payment of their outstanding invoices to improve their liquidity. In order to reduce non-payment risks, suppliers today often secure their receivables with trade credit insurance. This usually covers a full year or is only available to a limited extent. In addition, there is often a considerable delay in making a claim. With Digital Guarantees we have created together with Traxpay in cooperation with our house banks the possibility to offer suppliers a customized, secure and cost-effective alternative. The guarantee amount is paid out on first demand without deductions. In this way, we offer them yet another opportunity to increase transparency along the entire value chain and to digitize processes,” explains Michael Maas, Head of Finance and Accounting at Landgard.
“We see Digital Guarantees as a flexible and strategic financial instrument, the value of which comes into its own especially in the current economic situation in view of disrupted supply chains and limited availability of goods. We are thus making an important contribution to ensuring business relationships and security of supply in an increasingly complex and difficult market environment,” adds Carsten Bönig, Member of the Board of Landgard eG.
“During the crisis, companies relied on their house banks and they delivered. However, since then, companies’ expectations of their house banks’ expertise have increased. We are happy to have found a sparring partner in Traxpay who develops innovative digital products in a unique way that improves transparency, security and business relationships in the long term,” says Bernd Ullrich, Head of Corporate Customers at NORD/LB.
“In line with the motto ‘Achieving more together’, Landgard offers a win-win situation with Digital Guarantees via the Traxpay platform. On the one hand, suppliers can flexibly and cost-effectively obtain an easily accessible alternative to traditional credit insurance. On the other hand, the suppliers not only support the dynamic growth of Landgard eG, but can also support their own growth at Landgard more easily and cost-effectively through the guarantees. Landgard suppliers thus gain access to cost-effective financing and hedging options – all on a single platform and with just a few mouse clicks,” explains Markus Rupprecht, CEO of Traxpay.