Supply chain finance built specifically for mid-market companies

Written by: Finexio

Additional Article Information: Medium

How FinexioCash is unlocking cash for mid-market companies and their suppliers

Cash has always been the lifeblood of business. But with increasing market volatility and the accelerating digital transformation agenda cash is taking on a new level of importance as it’s needed to help endure shocks and take advantage of new opportunities.

The world’s largest companies are already accessing a new source of cash

The world’s largest companies and their suppliers have been able to tap into a new source of cash for a while – their payables, by separating when they pay from when their suppliers get paid. They’ve been able to achieve this using first bank-led supply chain finance and then more recently more sophisticated supply chain finance solutions provided by technology vendors and their financing partners.

How supply chain finance works

Supply chain finance works by using third party funds to pay your vendor earlier than they otherwise would be paid in exchange for a reasonable discount. In this way the vendor gets payment in their bank account for the goods or services that they have provided far earlier than they otherwise would have done. At the same time the buyer can take longer to pay, for example extending payment terms from 30 to 60 days, and at invoice maturity they pay the third party funder the full invoice value.

An opportunity previously out of reach

In principle, this is highly attractive for both the buyer and the supplier as both parties unlock more of the cash they need to fund their business. However, realizing the opportunity in practice has been much harder. Banks have rarely been able to enroll more than the top 20 suppliers onto a bank-led program as their manual approach doesn’t cost-efficient. And for enterprise technology vendors, while they can reach thousands of suppliers via a technology-led solution, their approach is often too complex and expensive to implement for mid-market companies.

A simpler way to unlock cash

What’s needed is a much simpler way for mid market companies and their suppliers to unlock the cash opportunity. That’s where FinexioCash comes in. It’s been designed from the ground up for companies that are using Finexio’s payment solutions to simply elect to join a program that gives their suppliers the opportunity to be paid early. It’s simple because instead of paying the invoice at maturity Finexio is merely paying the invoice faster through its established payment rails. At invoice maturity, Finexio processes the payment from the buyer to them instead of to the supplier.

For suppliers, the solution is simple too. Sign up is simply a matter of going to an online form, reading through the T&Cs, and agreeing to them – which can be completed in minutes. All eligible invoices are automatically paid within ten days directly into the supplier’s bank account via automated ACH. No need to process any costly paper checks. Suppliers get remittance confirmation via email showing the net payment amount and the discount so that they can easily undertake reconciliation in their finance system. And what’s more, they can switch the program on or off at any time giving them complete control.

Realizing the cash win-win

For mid-market companies by gaining flexibility over payment timing they finally truly realize the opportunity to free up much-needed cash for their business, and for their suppliers to build financial resilience and being better able to take advantage of new opportunities as they present themselves.


To learn more about FinexioCash, click here to get in touch with the Finexio team.



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