Expanding Supply Chain Finance: A New Approach to Revenue Gains

| September 25, 2012 | 0 Comments


In classic supply chain finance (SCF) programs, multiple conditions can
disqualify more than 85% of suppliers from participating in the program,
denying banks the opportunities to deepen relationships with corporate
customers and to provide much-needed financing to the supply chain.
Within the highly competitive SCF space, banks must find a way to
provide access to more suppliers and meet customers’ needs in a
cost-effective manner. Using the SCF program tactics shared by Syncada
from Visa, banks can increase customer satisfaction and expand
relationships with buyers and suppliers.

Historically, there are several reasons that banks limit the suppliers
eligible for SCF programs. The high cost of enrolling suppliers,
including credit limitations, labor-intensive contracting processes,
legal fees, and limited transaction flow, reduce SCF profitability.
Without access to SCF, these non-eligible suppliers often seek expensive
alternate solutions, such as factoring, which are reflected ultimately
in a higher unit price to the buyer.

“A new approach can give banks an edge in supply chain finance, allowing
them to fully realize revenue potential in new or existing buyer
programs,” explains John Holtan, Product Director for Supply Chain
Finance at Syncada. “Maximizing working capital is essential in today’s
marketplace. Banks that provide a comprehensive suite of SCF solutions
across a buyer’s entire supplier base will retain existing customers and
acquire new ones.”

With new technology, banks can extend their supply chain finance options
to onboard more suppliers, especially those with critical working
capital needs. To learn more, join Syncada and Trade Finance Magazine
on Thursday, September 27, for a live webinar, titled “Grabbing Supply
Chain Finance by Its Tail”. To register, click
or visit www.syncada.com/educationandresources.aspx
and select “Webinars”.

About Syncada

Syncada from Visa provides a B2B network for financial institutions to
enable clients to increase control over their financial supply chains,
regardless of language or currency. Financial institutions use Syncada
to deliver standardized invoice processing and payment with integrated
financing to their corporate and government clients. Syncada processes
millions of invoices for buyers and makes payments to tens of thousands
of suppliers in 47 countries. In 2011, Syncada processed more than USD
$21 billion in payments. Visit www.syncada.com
for more information.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50418271lang=en

MULTIMEDIA AVAILABLE:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50418271lang=en

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