Global Telco Achieves Material Payment Extension with DemicaTelecoms - Global
A global telecoms company providing fixed-line, broadband, television and mobile services to over 30 million subscribers across Europe and the Americas, generating over $10 billion of revenues, sought to achieve an extension of supplier payments to provide the Company with additional liquidity.
The Company engaged Demica to automate the solution, enabling the suppliers to be paid automatically by the funder on invoice maturity with the Company repaying the funder on an agreed extension date.
Demica integrated with the buyer’s ERP system, automatically collecting open item files from a secure SFTP server, selecting the agreed supplier payments and sending payment messages to the funder upon invoice maturity and the buyer on extension maturity. Demica’s advanced Payment Extension solution enabled the transaction to be implemented swiftly within no supplier onboarding and complete automation for the both the funder and buyer.
Demica’s solution not only provided administrative efficiency but also enabled the buyer to access additional financing through the artificial extension of payment terms.