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Top 5 Supply Chain Finance Solutions

FTB News Desk — Wed, 14 Aug 2024 13:00:36 +0000

Table of contents:
1. Reverse factoring
1.1 Overview:
1.2 Benefits:
1.3 Use Case:
2. Dynamic Discounting
2.1 Overview:
2.2 Benefits:
2.3 Use Case:
3. Inventory Financing
3.1 Overview:
3.2 Benefits:
3.3 Use Case:
4. Trade credit insurance
4.1 Overview:
4.2 Benefits:
4.3 Use Case:
5. Supply Chain Finance Platforms
5.1 Overview:
5.2 Benefits:
5.3 Use Case:
6. Conclusion

Supply chain finance is yet another pertinent aspect for today’s swift business operations of any organization, hence the need for efficient mechanisms for the implementation of SCF solutions. Thus, the proper utilization of SCF solutions can become the key to the B2B organization’s working capital management, risk minimization, and improved supplier relations. The following is a list of the five prominent SCF solutions highlighted in this blog to shape the current business environment.

1. Reverse factoring
1.1 Overview:
Factoring is when a company sells its invoices to a third-party financial institute and gets paid for the invoice immediately; reverse factoring, on the other hand, helps the supplier obtain payments for invoices from the third-party financial institute. This solution makes it easier for suppliers to enhance their cash flows to the extent required without affecting the buyer’s payment terms.

1.2 Benefits:

Cash flow for suppliers will also be positive since the credit terms will help increase their sales.
Strengthened supplier relationships
Offer longer credit terms to the buyers.
Less chances of supply chain disruptions

1.3 Use Case:
A case involves a leading electronics manufacturer that cooperates with a bank to organize the reverse factoring, which helps the small suppliers of the manufacturer to receive the money earlier, but the manufacturer receives the same attractive opportunities to pay for the purchases. This boosts up the monetary position of the supply chain and helps in the early delivery of parts.

2. Dynamic Discounting
2.1 Overview:
Dynamic discounting enables the procurement department to give early payment to suppliers in a return for a reduction in the invoice amount. This is an advantage to both the supplier and the buyer, as it helps both keep good cash flow and at the same time reduce cost.

2.2 Benefits:

Better pay management for buyers
Cost savings through discounts
Enhanced supplier liquidity
Strengthened supplier relationships

2.3 Use Case:
A global retailer applies dynamic discounting it targeting working capital management, which issues early payment discounts to its suppliers. The suppliers get fast access to some of their cash, while on the retailer part, there is a massive save on procurement costs.

3. Inventory Financing
3.1 Overview:
Inventory funding helps the business organization to leverage inventory in an attempt to acquire credit facilities. This solution enables companies to secure the required amount of money for acquiring more stocks or defraying some of the business expenses.

3.2 Benefits:

Enhanced liquidity
Lack of rigidity in managing the stocks of the business.
Improved cash flow management
>One of the main ways that firms achieve competitive advantage is through attaining superior inventory management status.

3.3 Use Case:
Inventory financing is best illustrated by the use of a wholesale distributor that uses the strategy of financing in order to successfully restock and balance increasing consumer needs. Due to the credit arrangement feature, the distributor obtains financing for new stock from the manufacturer or supplier, using the current stock as security to meet the customers’ demands.

4. Trade credit insurance
4.1 Overview:
Trade credit insurance is an insurance cover that keeps business risks of non-payment by buyers in check. This solution assists the firms to implement adequate measures to protect their accounts receivable as well as mitigate credit risk.

4.2 Benefits:

Protection against bad debt
Enhanced credit management
Thus, there was higher confidence in extending credit.
Improved financial stability

4.3 Use Case:
Trade credit risk is managed using trade credit insurance by a manufacturing firm that sells to clients in foreign markets. This insurance enables the company to offer credit confidently as it is assured that its receivable through offering favorable credit terms, hence catalyzing its move into new markets.

5. Supply Chain Finance Platforms
5.1 Overview:
Supply chain finance platforms are applications that help link buyers, suppliers, and or lenders along the supply chain. Such platforms automate the SCF processes and provide different funding opportunities and access to transaction data in real time.

5.2 Benefits:

Increased transparency and efficiency
Availability of several types of funds
Real-time tracking of transactions
Improved coordination among the entities that make up supply chains

5.3 Use Case:
An MNC implements a SCF platform, which allows for the consolidation of the company’s SCF operations. The platform gives a single location to work with reverse factoring, dynamic discounting, and inventory financing, making its supply chain procedure more competent and efficient.

6. Conclusion
The decisions concerning the implementation of appropriate supply chain finance solutions can be critical for the company’s sustainable effectiveness and, in many cases, financial stability. It indicates that the use of these main solutions of SCF, namely reverse factoring, dynamic discounting, inventory financing, trade credit insurance, and SCF platforms, makes a huge difference for better cash flow and for balancing risks and rewards with suppliers. Thus, further education on the new motivations of supply chain finance (SCF) will be important for sustaining competitive advantage in B2B markets as the SCF supply chain environment changes.

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NewEdge Wealth adds Kevin McIntyre to Investment Team

BusinessWire — Wed, 10 Jan 2024 14:45:46 +0000

NewEdge Wealth, LLC, a registered investment adviser specializing in servicing the needs of ultra high net worth families, family offices and institutional clients, has appointed Kevin McIntyre as Principal, Municipal Bond Portfolio Manager.

With nearly 30 years of experience, McIntyre is an esteemed professional in municipal bond portfolio management with a focus on separately managed accounts. He served as a Senior Municipal Portfolio Manager and Executive Director at UBS Asset Management before joining NewEdge Wealth.

“Kevin is a remarkable addition to our team,” said Cameron Dawson, Chief Investment Officer of NewEdge Wealth. “His depth of knowledge and expertise in municipal bond portfolio management, coupled with the ability to foster trusted relationships, strongly aligns with our commitment to delivering top-tier investment solutions for our clients. We are eager to see all of the great contributions he will bring to the firm.”

As Principal, Municipal Bond Portfolio Manager, McIntyre is responsible for the design, construction and implementation of fixed-income and municipal bond strategies across NewEdge Wealth. In addition, he will work closely with advisors to provide custom fixed-income solutions and investment insights.

He joins an investment team that includes Dawson and NewEdge Wealth CEO Rob Sechan as well as outside Investment Advisory board members: Fundstrat Global Advisors Managing Partner Tom Lee, Omega Family Office Chairman and CEO Leon “Lee” Cooperman and Hayman Capital Management Founder and Chief Investment Officer Kyle Bass. McIntyre’s arrival marks a pivotal moment in advancing the firm’s commitment to excellence in a variety of investment classes.

“I am thrilled to join NewEdge Wealth and collaborate with a team known for its dedication to innovation and client-centric solutions,” McIntyre said. “I look forward to leveraging my experience to further enhance our fixed-income strategies, drive growth and deliver dynamic solutions to our ultra high net worth advisors and clients.”

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Fly Now Pay Later Secures $75M from Atalaya Capital Management

PRNewswire — Wed, 12 Jan 2022 15:30:24 +0000

– Juniper Research anticipates that Buy Now, Pay Later (BNPL) will account for more than 50% of the market for embedded finance by 2026.

– Domestic travel spend in the United States is forecast to hit 968 billion U.S. dollars by 2024, according to Statista.

– BNPL continues to earn global payments market share, expecting to double from 2.1% in 2020 to 4.2% by 2024 according to 2021 Worldpay data. Providers are rapidly expanding into the checkout carts and consumers see BNPL as a safe way to spread out interest-free payments. Bank transfers, charge cards, cash on delivery and other services are expected to decline.

Fly Now Pay Later (www.flynowpaylater.com/us/), a global fintech company offering consumers an alternative and more flexible way to finance travel, has closed a USD $75m debt funding package provided by funds managed by Atalaya Capital Management to support expansion into the United States – the largest travel market in the world.

As part of the funding package, the New-York headquartered financier has also provided an equity investment into the business.

Building on USD $60M (GBP £45M) of new investment made in the previous two equity funding rounds, the alternative payments provider launched in 2015 by Jasper Dykes (32), has now raised a total of USD $150 million in debt and equity funding to support global expansion.

The milestone has been achieved in less than six years of trading, during which time Fly Now Pay Later successfully navigated 18 months of unprecedented travel sector disruption.

With online US commercial aviation returning to pre-pandemic levels, Fly Now Pay Later will use the new investment to further build out and scale its operational footprint in the world’s largest travel market.

Fly Now Pay Later is a leading BNPL player in the largely unaddressed travel sector. With a presence in all core BNPL markets (UK, US and EU). Fly Now Pay Later is the only global player solely focused on the rapidly recovering travel sector.

The alternative lender enables customers to spread the cost of a trip over up to 12 monthly instalments by partnering with leading travel merchants or directly to consumers through its Anywhere app

“To have secured another landmark amount during one of the worst slow downs in travel history after it ground to a halt is testament to the efforts of the whole team,” said Fly Now Pay Later founder and chief executive Jasper Dykes.

“The US, which we entered in 2020, purposely formed a big part of our resilience plan as domestic leisure travel has been less affected than in Europe. And will continue to be a key focus as we enter 2022.

“There’s always a temptation to put the brakes on in times of significant headwinds, but with consumer expectations continuing to shift from traditional lending towards alternative convenient digital experiences, we upheld our investment commitments into developing our technology and threw ourselves into bolstering our partnership network in the states, which is really gaining momentum.”

In the past year, Fly Now Pay Later has entered into significant new commercial partnerships including:, Malaysia Airlines and the airline payments network Universal Air Travel Plan (UATP) (EU merchants only).

In July, the alternative travel payments provider signed a deal with Cross River Bank, the New Jersey-based financial services organization and Banking-as-a-Service (“BaaS”) provider, to further fuel its rapid growth internationally.

This was strengthened by a strategic UK and US link-up with ChargeAfter, a global network of BNPL and point-of-sale financing for merchants, making Fly Now Pay Later the first travel-centric installment payment option available on the platform.

“It’s a particularly exciting time for the company. The category is experiencing tremendous growth and with that we also welcome the FCA’s recent decision to regulate the sector in the UK to facilitate its continuing maturity,” continued Mr Dykes.

“There are tens of thousands of people who have families around the world who need a frictionless way to finance their flights.

“By removing financial boundaries, we hope to reconnect people with their friends and families no matter where they are around the globe.

“Since launch, we have been on a mission to make travel more accessible and affordable for more people, by providing payment flexibility at the click of a button.

“Our proprietary platform has been designed to make instantaneous credit decisions – providing highly tailored and digestible payment options to consumers traditionally underserved by existing credit institutions.”

The use of BNPL products nearly quadrupled in 2020, to £2.7 billion in transactions in the UK, with five million people using these products since the beginning of the coronavirus pandemic.

Analysts forecast that by 2026, spending via BNPL services is predicted to hit almost $51bn (£37bn) in the UK alone.

BNPL accounted for 2.1% — or about $97 billion — of all global e-commerce transactions in 2020, according to Worldpay.

Hundreds of travel companies use Fly Now Pay Later to offer finance (from as little as 0% APR) to holidaymakers, who can make repayments in affordable scheduled installments. Its merchant partnerships range from SME travel operators to leading operators like Malaysia Airlines, TravelUp HotelsOne, Air Serbia and Azores Airlines.

The alternative travel payments firm has capitalized on the market opportunity to consolidate its leading position in the UK and expand its merchant base, as travel brands seek to up their e-commerce and digital payments game to drive sales post market recovery.

Since it launched in 2015, Fly Now Pay Later has focused on building a best-in-class product around its audience and their purchasing habits; seeing demand and customer loyalty solidify in the process.

The alternative travel payment provider currently employs 90 staff in the UK, United States & Latvia and is aiming to support each market over the next year in line with customer demand and as travel restrictions ease. It will onboard a further 250 + personnel across the three territories in 2022.

The company can be used to book flights, hotels, package holidays, car hire and more and offers frictionless payment options to support businesses and the end consumer.

“Fly Now Pay Later has handled the past 24 months admirably. It’s a strong brand in a high growth mode, that’s well positioned to capture the buoyant category demand.

“We’re proud to support the company and its experienced management team as they continue to make life easier for travelers and merchants worldwide with its tech-enabled financial solutions.” added James Intermont, Principal at Atalaya Capital Management

The service is quick and easy to use, and a credit check is performed instantly. Travel providers who are interested in signing up to Fly Now Pay Later should visit https://www.flynowpaylater.com/us/for-business/.

Travelers looking for a quick and easy way to book a trip download the app here

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MassMutual Ventures Announces USD $100 Million Second Fund for Southeast Asia

BusinessWire — Wed, 22 Jan 2020 07:30:11 +0000

MassMutual Ventures (MMV) announced today that it has launched a second fund of $100 million for Southeast Asia, bringing its total capital under management to USD $350 million across four funds – two USD $100M funds in the U.S. and USD $150M in Southeast Asia across two funds. One year after establishing MassMutual Ventures Southeast Asia (MMV SEA), the Singapore-based team will continue to build on its successful strategy of investing in early- and growth-stage companies in the digital health, financial technology and enterprise software sectors.

With the addition of this second fund for MMV SEA, provided by parent company Massachusetts Mutual Life Insurance Company (MassMutual), MMV’s overall investment capital is now more than triple the size since it was established over five years ago. In addition to investing in companies in the Southeast Asia region, MMV SEA will widen its investment reach by seeking opportunities in Hong Kong, India, Australia, and New Zealand.

“We are excited to significantly expand our international presence with this second fund for MMV SEA. This additional capital will allow us to invest in more startups in the region that have the ability to generate positive returns for MassMutual,” said Doug Russell, Managing Director and Head of MassMutual Ventures. “Furthermore, we can continue to build a truly global MMV platform, giving entrepreneurs access to significant networks and expertise, while providing MassMutual with valuable insights into new trends, technologies and solutions that are being developed around the world.”

Since launching in 2014, MMV has backed nearly 40 companies in North America, Europe, Israel, and Southeast Asia. Seven of those companies are part of MMV SEA’s current portfolio. MMV SEA also works with other MassMutual entities in the region – leveraging their relationships to help portfolio companies identify potential opportunities for expansion and strategic partnerships.

“We look forward to further successes with MassMutual Ventures in Southeast Asia and across the region, as the team widens its investment reach to back more companies in this dynamic and thriving part of the world,” said Eddie Ahmed, Chairman, President and CEO of MassMutual International. “Additionally, this second fund underscores MassMutual’s growth plans as we look to capitalize on attractive, emerging global opportunities in new markets.”

Managing Directors Ryan Collins, formerly an Executive Director at Goldman Sachs, and Anvesh Ramineni, previously Head of Investments at OpenSpace Ventures, lead MMV SEA. Both are experienced investment and operating professionals in the region, and are charged with sourcing and executing investment opportunities.

“As a vibrant and growing ecosystem, Southeast Asia offers tremendous opportunities,” said Ryan. “The substantial increase to our investment capital reinforces our commitment and focus, as we continue to believe in both the local opportunity and in the potential for globally successful companies to emerge from this region.”

Anvesh added, “The larger new fund will give us the ability to invest in an additional 15 to 20 companies and allow us to further support our portfolio companies as they grow. We look forward to continue backing exceptional entrepreneurs and building upon the success we have had in this region over the past year.”

Reflecting the increased capital under management and commitment to its portfolio companies, MMV SEA recently hired a new associate, Carlos Jo Loo. Prior to MMV SEA, Carlos was a Senior Associate at the Boston Consulting Group (BCG) SEA. During his time at BCG, he worked extensively with BCG Digital Ventures, where he co-founded two start-ups in the energy and industrials sectors. Carlos holds an MPhil in Finance from the University of Cambridge, and a BSc in Economics (First Class) from the University of Sussex.

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