SUPPLY CHAIN FINANCE

Demica’s innovative Supply Chain Finance solution enables our clients to improve working capital by extending payment terms to thousands of their suppliers. An extensive network of global financial institutions, powered by Demica’s market leading technology platform and innovative online onboarding tools, will then offer to pay suppliers immediately at an implied cost of funding significantly lower than they can achieve independently. The result is a win-win with improved working capital for both our clients and their suppliers.

Want to know more?

If you would like to speak to us about our solutions, please contact:
Enrique Jimenez

Enrique Jimenez

Director Supply Chain Finance - Working Capital Solutions

Languages EN SP

+44 (0) 20 7450 2515 Monday to Friday, 08:00 to 19:00 Contact Enrique

WHAT IS SUPPLY CHAIN FINANCE?

Platform Demonstration

SUPPLY CHAIN FINANCE

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  • Extend payment terms by 30-180 days
  • Suppliers can receive early payment on invoices automatically or on-demand
  • Ability for suppliers to receive payment in local or domestic currency 
  • Demica’s supplier portal provides detailed tracking of purchase orders, invoices and payments
  • Suitable for investment grade and non-investment grade buyers

HOW DOES IT WORK?

Supply Chain Finance enables procurement and treasury teams to improve working capital through negotiating an extension of payment terms with suppliers, while offering suppliers the ability to take immediate payments on approved invoices. The working capital released can be used for any purpose including funding acquisitions or reducing bank debt, ultimately improving financial ratios and company valuations. Establishing a Supply Chain Finance solution will provide suppliers additional liquidity which can greatly improve the relationship between the buyer and supplier.

Supplier motivation for joining programmes vary. For suppliers of investment grade companies, the very low cost of funding is highly attractive. For suppliers to non-investment grade firms the motivation is often to minimise their credit exposure and hence be in a position to sell higher volumes of goods at a lower risk.

Funding is usually sourced from our clients’ relationship banks, with global programmes being syndicated on our multi-funder platform, enabling the financial institution that is best positioned to onboard suppliers in each jurisdiction to be selected.

Demica has broad and extensive experience in establishing Supply Chain Finance solutions in various formats, including SPV structures. Following Demica’s selection in 2017 as the platform to power FCIreverse on behalf of FCI’s 400 bank and independent factoring members, Demica has established the most comprehensive funding network in the market: FCI has members in 90 countries.  

Making supplier onboarding easy is critical to success. Demica has a unique online collaborative platform that allows the buyer, funder and supplier to work together. Online marketing and self-onboarding enables us to efficiently onboard hundreds of suppliers onto our clients’ programmes.

HOW DOES DEMICA DELIVER THIS?

Demica can undertake several different roles when implementing a Supply Chain Finance programme

ARRANGER

  • Access to over 400 global banks, institutional investors, and alternative finance providers 
  • Managing the complete end to end transaction process 
  • With over $3.2bn of SCF transactions live, we have a unique understanding of investor appetite 

Advisor

  • Extensive working capital analyses of the buyer to identify the benefits of implementing a Supply Chain Finance programme
  • Full supplier analysis, working with the buyer to tier suppliers through a combination of a cost of capital analysis and buyer relationship

Servicer

  • Advanced multi-funder platform with market leading interfaces
  • Full white-labelling capabilities for funders and corporates
  • Market leading Supplier Onboarding tools that are integrated seamlessly into the Supply Chain Finance platform 

THE DEMICA ADVANTAGE

For Corporates

  • Expertise in cross border SCF programmes from a team with over 20 years of supply chain finance experience  
  • Market leading platform for both buyers and suppliers including rich portal functionality 
  • Proprietary onboarding tool increasing participation by 25%
  • Proprietary legal structures to facilitate a multi-funder solution
  • Full foreign exchange capabilities enabling the supplier to take payment in local currency

For Funders

  • Proven cloud based technology that provides a resilient & scalable platform to power some of the world’s largest supply chain programmes
  • Processing & KYC data can be held in different locations depending on regulatory requirements 
  • Full white label solution if required
  • Automatic reconciliation of invoices and payments by integrating into funders’ bank accounts
  • FX capture through Demica’s FX integrations
  • Supplier onboarding can be undertaken by the funder or by Demica as a service 

CLIENT TESTIMONIALS

“Demica have built a highly robust and reliable platform that supports the most complex of supply chain finance programmes. Demica's expertise and understanding of our business needs are exactly what we look for in a business partner.”

OLIVER PETERSEN
-- ING Commercial Banking

“Demica's technology is amongst the most sophisticated and flexible in the SCF industry.”

TONY BROWN
-- The Trade Advisory

Want to know more?

If you would like to speak to us about our solutions, please contact:
Enrique Jimenez

Enrique Jimenez

Director Supply Chain Finance - Working Capital Solutions

Languages EN SP

Enrique has 18 years’ experience in Corporate banking with a mix of Equity Research and Working Capital Solutions roles. He covered the full spectrum from Product Specialist to Origination.
+44 (0) 20 7450 2515 Monday to Friday, 08:00 to 19:00 Contact Enrique

CASE STUDIES

Illustrating the depth of our client relationships, we have highlighted a few programmes powered by Demica

VIEW ALL CASE STUDIES