A proposal to unlock the potential of diverse businesses and increase their economic vitality by creating a Supply Chain Finance program to provide greater access to affordable capital by leveraging the investment grade receivables of the City of Philadelphia.
Does it make sense to apply for alternative financing if you have a good cred...Mantis Funding LLC
After more than a decade spent revolutionizing the financing industry, alternative lending institutions are now becoming increasingly mainstream. They were earlier seen as PLAN B for desperate business owners refused by the banks, but are now becoming the first choice of SME owners who naturally think of alternative online lenders when faced with a credit crunch.
How SupplierPay Will Impact Your Business and How to Get AheadTaulia
On July 11th, 2014, The White House announced an early payment initiative called SupplierPay to help small businesses get access to financing. President Obama selected a group of top executives from 26 of the largest U.S. companies, many of which are already using Taulia, to discuss the impact supplier financing has on the small business economy.
This isn't new to us--we've been helping Fortune 500 companies pay their suppliers earlier for over 6 years.
In this presentation, discover:
-What exactly SupplierPay is and why it matters to the economy
-The impact SupplierPay will have on your business
-How you can easily get ahead
The report aims at stimulating thoughts and discussions on Supply Chain Finance topic and it doesn’t intent to give a professional advise to your company, taking into account that each Business has specific requirements and goals.
Does it make sense to apply for alternative financing if you have a good cred...Mantis Funding LLC
After more than a decade spent revolutionizing the financing industry, alternative lending institutions are now becoming increasingly mainstream. They were earlier seen as PLAN B for desperate business owners refused by the banks, but are now becoming the first choice of SME owners who naturally think of alternative online lenders when faced with a credit crunch.
How SupplierPay Will Impact Your Business and How to Get AheadTaulia
On July 11th, 2014, The White House announced an early payment initiative called SupplierPay to help small businesses get access to financing. President Obama selected a group of top executives from 26 of the largest U.S. companies, many of which are already using Taulia, to discuss the impact supplier financing has on the small business economy.
This isn't new to us--we've been helping Fortune 500 companies pay their suppliers earlier for over 6 years.
In this presentation, discover:
-What exactly SupplierPay is and why it matters to the economy
-The impact SupplierPay will have on your business
-How you can easily get ahead
The report aims at stimulating thoughts and discussions on Supply Chain Finance topic and it doesn’t intent to give a professional advise to your company, taking into account that each Business has specific requirements and goals.
Purchase Order Finance (BUSINESS BORROWING BASICS 2018)Financial Poise
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/purchase-order-finance/
Purchase-order financing (P/O financing) is designed to extend credit to a company that needs cash quickly, to fill a customer order. A company may operate with such a small amount of working capital that it cannot afford to pay the for the cost of producing a customer’s order. P/O financing enables such company to not turn away business, by borrowing from a lender using the purchase order itself as collateral to support a loan. This webinar explains when P/O financing may make sense for a company; some of the more common terms and conditions of such financing; how to negotiate those terms; how it co-exists with other forms of financing and potential alternatives.
Supply Chain Financing A Growing Opportunity for All.pptxM1xchange
Supply Chain Finance (SCF) is a financing solution that allows businesses to make the most of their inventory. It can be used in a range of industries, but is especially popular with large manufacturers who have large inventories and need flexible access to cash. Supply chain finance can be used for anything from purchasing raw materials, production equipment and machinery, shipping goods, and storing finished products before they are shipped out to customers.
The information, concepts and analysis contained herein are provided to you on a confidential basis and are
considered proprietary to Global Business Intelligence (GBI). The facts of this Guide are believed to be
correct at the time of publication but cannot be guaranteed. The information herein reflects prevailing market
conditions, listing Sponsor input, and our judgment as of this date, both of which are subject to change. As
such, Global Business Intelligence cannot accept any liability whatsoever for actions taken based on any
information that may subsequently prove to be incorrect.
This Guide is intended as a basis for discussion and thought provoking ideas and does not constitute
recommendations by GBI.
Naim - Financing SMEs in global sustainable value chains: the role of supply ...OECD CFE
20-21 February 2018, Mexico City: Workshop on building business linkages that boost SME productivity. http://www.oecd.org/cfe/smes/workshop-on-building-business-linkages-that-boost-SME-productivity.htm
What Is Invoice Financing?
tab backing is an account system that lets businesses adopt against their accounts delinquent to induce cash snappily. With tab backing, a company uses an tab or checks as collateral to get a loan from a backing company.
Invoice financingvs. invoice factoring tab backing and tab factoring are two ways a business can induce cash from overdue checks. tab backing is analogous to a traditional secured loan in that it has set payment terms and interest charges accumulate on outstanding balances, but it uses one or further checks as collateral for the loan. In tab factoring, the cash the business receives is n’t in the form of a loan. Rather, a factoring company, AKA a factor, actually “ buys ” the tab and assumes responsibility for its collection.
crucial differences While the benefits of tab backing and tab factoring are original — videlicet, the damage of cash on receivables that are still outstanding — the two styles are structured veritably else. The differences include how the backing company charges for its service and which party pursues the client for payment.
crucial Takeaways
tab backing allows businesses to adopt plutocrat against their pending accounts delinquent.
Businesses generally conclude for tab backing when they're facing a cash deficit or temporary cash- inflow problem.
tab backing is more precious than traditional bank backing, but it requires significantly lower paperwork and can generally be secured much hastily.
tab backing makes utmost sense for businesses that have well- known guests who pay their bills on time.
It isn't an option for B2C businesses; it’s only applicable in B2B sectors.
Falcon is one of the leading P2P Invoice Discounting platforms in India where we connect blue chip companies with investors. We aim to revolutionize the investment market in India by creating a one-stop shop for all borrowers & investors with varied profiles and needs who can have access without any risk. Unlike banks and financial institutions Falcon increases investor's yields by eliminating mediators like commercial banks, depository institutions etc
Invoice Financing Explained
Every company needs cash to fund its operations to pay for accoutrements , distribution, rent and payroll, to name just a many musts. Companies with bank loans or lines of credit can take advantage of them during ages of slow cash inflow. But companies that need cash snappily or ca n’t secure a traditional bank loan occasionally turn to receivables financing. In receivables backing, a fiscal company extends a loan to a business grounded on earnings earned but not yet collected. For some companies, the cash they admit — frequently within a day or two of entering into a backing arrangement with a fiscal company — can give essential liquidity until they've a more comfortable cash bumper.
tab backing works best for B2B merchandisers that have well- known guests with a de pendable payment history.
Optimize Cash Flow with Deep Tier Supply Chain Finance Solutions..pptxM1NXT
Traditional open account payment terms have been the most trusted and reliable method for businesses for the longest time. Despite their shortcomings and challenges, like extended waiting periods for invoice payments that ended up straining finances and adversely impacting both buyers and suppliers, they’ve been there in the industry.
Visit : https://medium.com/@m1nxt/optimize-cash-flow-with-deep-tier-supply-chain-finance-solutions-071a3788c
Greensill Capital Investor Presentation Deck March 2016.pdfBryann Alexandros
Greensill Capital was a financial services company based in the UK and Australia. It specialized in providing supply chain financing and related services. The company was founded in 2011 by Lex Greensill, a former banker and adviser to the UK government. It claimed to have revolutionized the way businesses pay their suppliers and access working capital. It had over 1,000 clients and 5 million suppliers in 175 countries by 2020. However, Greensill Capital failed in March 2021 after losing its main insurer and facing a liquidity crisis. The company was accused of misrepresenting its assets, overexposing itself to a single client (GFG Alliance), and engaging in questionable practices such as reverse factoring and future receivables. The company filed for insolvency protection on 8 March 2021 and was sold to Apollo Global Management for $60 million134. The failure of Greensill Capital triggered a series of investigations, lawsuits, and scandals involving its investors (such as Credit Suisse and SoftBank), its customers (such as GFG Alliance and Sanjeev Gupta), its regulators (such as the UK Financial Conduct Authority and the Swiss Financial Market Supervisory Authority), and its lobbyists (such as former UK Prime Minister David Cameron).
Why Treasury and Procurement Should Collaborate for a Successful Supply Chain...Elena Oliveira
Supply Chain Finance (SCF) solutions have a long-track record of improving working capital for corporations. However, many companies still remain challenged with managing the priorities of procurement and supplier management against working capital efficiencies sought by Corporate Treasury.
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/factoring/
A simple way to think about factoring is to think of it as a company selling its invoices or accounts receivable (A/R) to a third party. It is not that simple, however, thus the purpose of this webinar. A factor makes a profit by buying A/R for less than 100% of its face amount. Companies that transact with factors are often cash-strapped. A factor will typically advance most of an invoice amount – usually between 70% - 90%. When the invoice is paid, the factor will remit the balance the company, less a transaction fee. This arrangement allows a company to get cash much faster than it would if it waited to be paid pursuant to the terms of its invoices (i.e. often 30 days) and even faster if its customer fails to pay within terms. This webinar discusses various common types of factoring arrangements; how to negotiate a factoring agreement; and alternatives to consider before deciding to factor.
In this presentation, Anup Singh domain leader of SME Finance domain at MicroSave highlights the key opportunities for the banks in enhancing access to finance to SMEs and also retaining customers through provision of non-financial services. Amongst other things, the focus is on use of automation to enhance efficiency in the processes of SME finance, lower origination cost and reduce turnaround time in expanding access to finance to SMEs.
ExtraFunds is a proven servicer in the short-term online lending marketplace. ExtraFunds is currently seeking to expand its operations by raising capital via Crowdfunder. For more details about the offering, visit www.crowdfunder.com/extrafunds.
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Purchase Order Finance (BUSINESS BORROWING BASICS 2018)Financial Poise
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/purchase-order-finance/
Purchase-order financing (P/O financing) is designed to extend credit to a company that needs cash quickly, to fill a customer order. A company may operate with such a small amount of working capital that it cannot afford to pay the for the cost of producing a customer’s order. P/O financing enables such company to not turn away business, by borrowing from a lender using the purchase order itself as collateral to support a loan. This webinar explains when P/O financing may make sense for a company; some of the more common terms and conditions of such financing; how to negotiate those terms; how it co-exists with other forms of financing and potential alternatives.
Supply Chain Financing A Growing Opportunity for All.pptxM1xchange
Supply Chain Finance (SCF) is a financing solution that allows businesses to make the most of their inventory. It can be used in a range of industries, but is especially popular with large manufacturers who have large inventories and need flexible access to cash. Supply chain finance can be used for anything from purchasing raw materials, production equipment and machinery, shipping goods, and storing finished products before they are shipped out to customers.
The information, concepts and analysis contained herein are provided to you on a confidential basis and are
considered proprietary to Global Business Intelligence (GBI). The facts of this Guide are believed to be
correct at the time of publication but cannot be guaranteed. The information herein reflects prevailing market
conditions, listing Sponsor input, and our judgment as of this date, both of which are subject to change. As
such, Global Business Intelligence cannot accept any liability whatsoever for actions taken based on any
information that may subsequently prove to be incorrect.
This Guide is intended as a basis for discussion and thought provoking ideas and does not constitute
recommendations by GBI.
Naim - Financing SMEs in global sustainable value chains: the role of supply ...OECD CFE
20-21 February 2018, Mexico City: Workshop on building business linkages that boost SME productivity. http://www.oecd.org/cfe/smes/workshop-on-building-business-linkages-that-boost-SME-productivity.htm
What Is Invoice Financing?
tab backing is an account system that lets businesses adopt against their accounts delinquent to induce cash snappily. With tab backing, a company uses an tab or checks as collateral to get a loan from a backing company.
Invoice financingvs. invoice factoring tab backing and tab factoring are two ways a business can induce cash from overdue checks. tab backing is analogous to a traditional secured loan in that it has set payment terms and interest charges accumulate on outstanding balances, but it uses one or further checks as collateral for the loan. In tab factoring, the cash the business receives is n’t in the form of a loan. Rather, a factoring company, AKA a factor, actually “ buys ” the tab and assumes responsibility for its collection.
crucial differences While the benefits of tab backing and tab factoring are original — videlicet, the damage of cash on receivables that are still outstanding — the two styles are structured veritably else. The differences include how the backing company charges for its service and which party pursues the client for payment.
crucial Takeaways
tab backing allows businesses to adopt plutocrat against their pending accounts delinquent.
Businesses generally conclude for tab backing when they're facing a cash deficit or temporary cash- inflow problem.
tab backing is more precious than traditional bank backing, but it requires significantly lower paperwork and can generally be secured much hastily.
tab backing makes utmost sense for businesses that have well- known guests who pay their bills on time.
It isn't an option for B2C businesses; it’s only applicable in B2B sectors.
Falcon is one of the leading P2P Invoice Discounting platforms in India where we connect blue chip companies with investors. We aim to revolutionize the investment market in India by creating a one-stop shop for all borrowers & investors with varied profiles and needs who can have access without any risk. Unlike banks and financial institutions Falcon increases investor's yields by eliminating mediators like commercial banks, depository institutions etc
Invoice Financing Explained
Every company needs cash to fund its operations to pay for accoutrements , distribution, rent and payroll, to name just a many musts. Companies with bank loans or lines of credit can take advantage of them during ages of slow cash inflow. But companies that need cash snappily or ca n’t secure a traditional bank loan occasionally turn to receivables financing. In receivables backing, a fiscal company extends a loan to a business grounded on earnings earned but not yet collected. For some companies, the cash they admit — frequently within a day or two of entering into a backing arrangement with a fiscal company — can give essential liquidity until they've a more comfortable cash bumper.
tab backing works best for B2B merchandisers that have well- known guests with a de pendable payment history.
Optimize Cash Flow with Deep Tier Supply Chain Finance Solutions..pptxM1NXT
Traditional open account payment terms have been the most trusted and reliable method for businesses for the longest time. Despite their shortcomings and challenges, like extended waiting periods for invoice payments that ended up straining finances and adversely impacting both buyers and suppliers, they’ve been there in the industry.
Visit : https://medium.com/@m1nxt/optimize-cash-flow-with-deep-tier-supply-chain-finance-solutions-071a3788c
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Supply Chain Finance (SCF) solutions have a long-track record of improving working capital for corporations. However, many companies still remain challenged with managing the priorities of procurement and supplier management against working capital efficiencies sought by Corporate Treasury.
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/factoring/
A simple way to think about factoring is to think of it as a company selling its invoices or accounts receivable (A/R) to a third party. It is not that simple, however, thus the purpose of this webinar. A factor makes a profit by buying A/R for less than 100% of its face amount. Companies that transact with factors are often cash-strapped. A factor will typically advance most of an invoice amount – usually between 70% - 90%. When the invoice is paid, the factor will remit the balance the company, less a transaction fee. This arrangement allows a company to get cash much faster than it would if it waited to be paid pursuant to the terms of its invoices (i.e. often 30 days) and even faster if its customer fails to pay within terms. This webinar discusses various common types of factoring arrangements; how to negotiate a factoring agreement; and alternatives to consider before deciding to factor.
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City of philadelphia diverse supply chain presentation (1)
1. The City of Philadelphia Diverse
Access to Capital Initiative
Proof of ConceptJuly 2016
This information is not for public use and not for distribution
2. 2
EXECUTIVE SUMMARY
Working capital management has traditionally been a zero-sum game as Buyers and Suppliers
typically have competing objectives - Buyers typically want to extend Days Payable Outstanding
(DPO) while Suppliers need to reduce Days Sales Outstanding (DSO).
In order to stimulate job growth for diverse small businesses in Greater Philadelphia, it is imperative
to unlock liquidity for these companies by eliminating cash gaps across the supply chain with
affordable financing options.
Our mission is to unlock the potential of diverse businesses and increase their economic vitality by
creating a Supply Chain Finance (SCF) program to:
Provide greater access to affordable capital by discounting/financing their high quality
receivables with the City of Philadelphia
Provide technical assistance in the form of strategic advice, developing business plans,
budgeting, financial modeling and effective management
Establish an ecosystem of diverse small and midsized businesses who share best
practices, collaborate to create new opportunities and grow revenues, improve operating
efficiencies and enhance their credit worthiness
We will be socially responsible and help the city’s pre-K needs of its children by donating a portion of
the revenue generated by this SCF program to help the City fund pre-K education and other public
school programs in the Greater Philadelphia area.
3. 3
PROBLEM
Traditional Small Business lending has decreased dramatically since the U.S. Banking crisis in 2008.
The cost of regulation and operational complexity has reduced the profitability of lending to small
businesses for banks.
The number of small business loans peaked at $14 billion in 2007 and declined to $5 billion in 2010 -
and has continued to decline.
A recent survey conducted by Pepperdine University revealed that 67% of Small Businesses
applying for credit were unsuccessful since the financial crisis. While the TARP program sanctioned
more than $30 billion for Banks to provide small business loans, approximately $4 billion went to
these companies and virtually nothing was provided to diverse businesses.
Lack of access to traditional financing has forced our nation’s primary economic engine – small
businesses – to seek credit from high cost and in many cases predatory alternative financing
sources such as hard money lenders, factoring companies and merchant cash advance providers.
On an annualized basis, the cost of capital from
these sources can easily exceed 100%
4. 4
LIQUIDITY DRAIN
A Cash Gap is created when the City’s payment terms do not fulfill the operating cash
needs of diverse small businesses that lack access to traditional working capital
financing. This Cash Gap in turn, drains the liquidity of the business.
Consequences of Liquidity drain
1. Operating invoice to invoice
2. Predatory lending
3. No growth or job creation
4. Business failure
CASH GAPS CREATE
LIQUIDITY
DRAINS
7. 7
SUPPLY CHAIN FINANCING
Supply Chain Finance is a solution that provides Buyers with enhanced electronic payment capabilities and
facilitates working capital management strategies while offering Suppliers cost-effective collection methods,
attractive financing opportunities and efficient cash flow management.
SCF is a solution that changes the working capital paradigm by combining elements of technology, finance and
services to provide buyers with enhanced payment capabilities via electronic payment methods while facilitating
working capital management strategies for Suppliers.
SCF turns the zero-sum game into a "win-win" by allowing buyers to extend contract terms (e.g. 90 days vs. 30
days) while mitigating the impact on the supplier base by providing an avenue for suppliers to obtain early payment
on their accounts receivable (reducing their DSO and shortening the cash conversion cycle).
The financing source (typically a bank), uses its balance sheet to provide financing/liquidity to suppliers for the
period between the discount date and the invoice maturity date. Financing is offered to the supplier based on the
buyer's credit quality - which significantly lowers the cost of capital to Suppliers.
In some cases Suppliers might be able to obtain financing at a cost that is 25% of what they currently pay!
Buyers get the benefit of reduced processing costs while mitigating the risk of supply chain disruption. This solution
is ideal for credit-worthy buyers who are seeking to benefit the supply base by leveraging their financial strength to
encourage the delivery of lower cost working capital to their vendor-partners.
://2016/02/22/report-minority-owned-suppliers-lack-access-to-capital-education-
around-financing-options/
8. 8
PROOF-OF-CONCEPT PROPOSAL
The Diverse Working Capital Facility is a Proof-of-Concept Proposal that targets
diverse businesses doing business with the City of Philadelphia.
The Program will:
• Prove the concept of a Buyer/Supplier side Diverse SCF Program
• Target diverse businesses doing business with the City
• Build a communication plan of the benefits/features of program through
partnered webinars, Chamber and other inclusive communication events
• Stimulate job creation in diverse communities
• Partner with The African American, Hispanic Chamber of Commerce, other
diverse business and inclusive organizational initiatives
9. 9
PROOF-OF-CONCEPT PROPOSAL
Diverse vendors doing business with the City of Philadelphia as well as non-profits providing
services on behalf of the City (e.g. Pre K, Department of Behavioral Health and the Phila.
School District) face liquidity gaps due to the City’s lengthy payment terms.
The City, however, has credit ratings of A2/A+ from Moodys/S&P and can help diverse
suppliers obtain very attractive discounting/financing rates to help close liquidity gaps by
participating in a Buyer or Supplier-Centric Supply Chain Financing Program.
Vendor City
Vendor provides
services to the City
The City acknowledges its
obligation to pay the vendor
in 90 days
SCF Early Payment
Invoice
Discount
1 Day TBD
1 Week TBD
2 Weeks TBD
3 Weeks TBD
Vendor now has a payment owed by an A2/A+
rated Obligor, due in 90 days…
…which can be liquidated much sooner, at a
discount or financed based on credit rating of City
10. 10
SUPPLY CHAIN FINANCE PLATFORM
City
Buyer Suppliers
A B C
SCF Platform
SCF Bank/Financing Provider
1
2
4
3
56
1. Buyer sends/uploads approved invoices to the SCF Platform
2. SCF provides an option to discount Supplier’s receivables to the City of Philadelphia
3. Supplier accepts discount proposal via SCF platform
4. SCF platform releases payment request
5. SCF financing provider makes payment to supplier net of discount or provides traditional Receivables
financing
6. SCF financing provider collects from buyer full invoice amount at invoice maturity date or provides
financing to buyer
11. 11
PILOT PROGRAM NEXT STEPS
• Collect
supplier data
for initial
analysis
• Define
enrollment
strategy and
timeframes
• Define
project team
• Update
supplier data
• Segment
supplier data
• Carry-out
data analysis
• Prepare and
review
analysis
result with
City
• Review
communication
material
• Sign-off
communication
material
• Develop
communication
material, letters,
brochures, emails,
etc.
• Upload supplier
data into
system
• Send
communication
s to suppliers
via email
• Contact
suppliers via
telephone or
on-site visit
• Recruit &
onboard
suppliers
• Refine
marketing
strategy if
necessary
• Refine target
supplier list
• Track and
report
supplier
enrollment
status and
issues
• Conduct
marketing
sessions for
suppliers
• Approve go-
live
notification
• Activate
suppliers
• Deliver
invoices
• Ensure
readiness of
all parties to
go-live
• Notify
suppliers of
live date
Enrollment
Strategy
Data
Analysis
Communications
Strategy
Enrollment
Ongoing
supplier
marketing
Supplier
Activation
Program Planning Program Execution
SupplierEnrolment
SupplierActivation
SCFPlatform&City