Supply Chain Finance: The New BattleGround

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“A customer-driven SCF program is very beneficial for businesses like ours.” Raylon Enterprise Company Limited SUPPLY CHAIN FINANCE THE NEW BATTLEGROUND @Primerevenu e FOLLOW US www.primerevenue.com Copyright © 2014 PrimeRevenue, Inc.

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WHAT IS SUPPLY CHAIN FINANCE?Supply chain finance is a set of solutions that optimizes cash flow and working capital by allowing buying organizations to lengthen their payment terms to their suppliers, while also providing an alternative option to their suppliers to get paid early. This results in optimized working capital for the buyer and enhanced cash flow for the supplier, while minimizing risk throughout the supply chain. Supply chain finance:

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A customer-driven SCF program is very beneficial for businesses like ours.Raylon Enterprise Company Limited

SUPPLY CHAIN FINANCETHE NEW BATTLEGROUND

@PrimerevenueFOLLOW US

www.primerevenue.comCopyright 2014 PrimeRevenue, Inc.

Introduced almost two decades ago, Supply Chain Finance relates to the process of optimizing the availability and minimizing the cost of capital within a buyer-centric supply chain of an organization. It encompasses financing solutions that strengthen the chain of activities between buyers and suppliers.

The benefits of Supply Chain Finance solutions as an important source of liquidity are increasingly recognized as companies across the globe experience ongoing reduction in capital availability and a resulting pressure to improve cash flow.

In recognition of the importance of Supply Chain Finance used by numerous leading organization in todays market, this publication highlights the benefits of such solutions and the key features of SCiSupplier, the leading and largest platform in supplier financing in the world.

PrimeRevenue, Inc. 2015

INTRODUCTION

What is Supply Chain Finance?

Supply Chain Finance is a solution that helps meet corporate objectives including: working capital, EBITA; while reducing supply chain risks. It allows corporates to increase their payment terms and/or provide the option to their suppliers to get paid early.

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Today, liquidity is highly valued by businesses of all sizes, whose executives have been reminded that Cash is King, and at the same time, guarded with the caution born of crisis by banks and other lenders, with the net effect that financing working capital is in short supply. The impact of this situation is significant, in the context of international trade finance. In international trade, cash flow is important, perhaps even more than in domestic transactions. Given recent evolutions in trade and supply chain finance, adequate liquidity is understood to be a competitive advantage, simultaneously for exporters and for importers alike. Perhaps equally important, it has become increasingly clear that there is a link between working capital and the financial performance of a company as represented by key performance indicators (KPIs). Today working capital is key in the conduct of business, even more so in the conduct of trade across borders, where complexities abound, timelines extend and liquidity is a necessity, not a luxury. Financing working capital is once again a competitive advantage, and Supply Chain Finance may be the most comprehensive, effective form of funding

available to meet the needs of the complex ecosystems that are the global supply chains of today. The benefits of Supply Chain Finance solutions as an important source of liquidity are increasingly recognized as companies across the globe experience an ongoing reduction in capital availability, and a resulting pressure to improve cash flow.

Unlike other sources of liquidity, such as lending from the capital markets, Supply Chain Finance programs are flexible and serve as an incremental source of credit as they add to rather than consume existing cash resources. Such solutions are becoming common across the business community, as early adopters and leading companies generated significant benefits from Supply Chain Finance solutions.

LIQUIDITY IS AT PREMIUMCASH IS KING IN SUPPLY CHAINS

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Supply Chain Finance: The New Battleground

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