Successful working capital finance solutions are based on true multibanking structures

Multibank Supply Chain Finance

Successful working capital finance solutions are based on true multibanking structures.

PrimeRevenue’s open bank-independent supply chain finance solution solves the problems associated with closed bank proprietary platforms that are limited in scope and scale. By offering a multibank financing model that is not dependent on any one bank relationship, we give buying organizations the control and flexibility required to unlock more cash from their supply chains. That control provides the buyer with an unprecedented choice in who funds their program versus having a bank decide who funds them.

The multibank capability of OpenSCi is unique to any other product offering in the market. The benefits offered by our bank-independent funding platform allow our clients to grow their financing program by simply adding new funding partners such as banks, nonbank funders, or even have the opportunity to fund their programs themselves. Our customers can choose from more than 50 funding sources.

Why are some financing programs more successful than others?

When setting up a supply chain finance program, corporations should consider the following aspects:

Supplier penetration.

A closed bank-proprietary platform where only one bank has an agreement with the supplier or seller of receivables limits your financing program to the types of suppliers the lead bank is willing to fund. In most cases, such limitations from a bank to fund are based on jurisdictions, currencies, types of suppliers, tenors, etc.

Our OpenSCi product suite has no supplier restrictions. We provide the ability to bringing additional funders with different supplier qualifications to cover all suppliers in all your relevant geographies.

Speed of supplier enablement.

A closed bank-proprietary platform limits your supply chain finance program to the supplier onboarding capabilities of a single bank, which cannot be optimized across all your geographies and languages. Today, there is no bank that can support its clients in terms of financing, program management, and support in every jurisdiction.

PrimeRevenue maximizes your supplier adoption andpenetration through the use of our web-based platform, SCiEnable, including supplier engagement and education, registration, onboarding, and training. We provide dedicated working capital solution specialists and customer support teams with local experts working with your suppliers to ensure they understand the full benefits of supply chain finance. When needed, we leverage our banking partnerships to provide local coverage and expertise delivering best-in-class solutions for onboarding suppliers for our customers.

Liquidity sustainability.

With bank-independent financing solutions, you are not relying on a single bank for supply chain finance liquidity. Should existing funders change their view on your credit rating and remove or cap liquidity, additional funders can be brought in without any disruptions. Similar to how buyers de-risk their own revolver by having multiple banks support them, their supply chain finance solutions should be no different, especially with an asset as valuable as a company’s supply chain.

Price.

Pricing in a supplier finance program is an important aspect. Different funders consider a variety of aspects when pricing their financing, such as credit risk appetite, industry, location, relationship, and others. Therefore, pricing can fluctuate wildly between banks. Having a multibank solution allows our clients to understand what the market rate is for their particular risk profile and react when banks go above the market rate. This is impossible to achieve on a bank proprietary system.

Risk.

In these unsettling regulatory times, banks are subject to many government regulations and compliance issues. The recent credit crisis showed that no bank is immune to crisis. When financing your supply chain, it is critical to have the ability to de-risk funding and ensure its continuity in order to achieve strategic working capital objectives. Using a multibank funding structure is the best way to de-risk your supplier finance program.

We can work with any bank that you choose, including banks sourced by PrimeRevenue and nonbank financial institutions. Different from syndication, where banks only work with limited partners who are not considered competitors in the market, our multibank platform allows you to bring in any funder or to self-fund your supplier finance program.

Are you interested in learning more?

To obtain more information as either a client or a partner, please contact us today. A PrimeRevenue representative will answer all of your questions. To read more about the latest in the industry, please read our detailed white paper focusing on onboarding suppliers as a key success factor in supply chain finance.