Supply Chain Finance Management
Our FSCM platform connects Buyers, Sellers, Suppliers, Distributors and Financial Institutions through a secure web-based technology to enable Early Payment to Suppliers, Late Payment to Distributors of corporate Buyers and Factoring to large corporates.
Our Supply Chain Finance solutions can either be deployed in combination with the Collaboration solutions or stand-alone. Once an invoice is confirmed, it can immediately be submitted to a financial institution for financing. Using our reverse factoring solution for example, the supplier will get paid the same day the invoice is qualified which greatly improves his working capital. A combination of supplier financing and buyer financing is possible as well, where the supplier gets paid earlier and the buyer can extend his payment terms beyond the due date of the payable.
Various Supply Chain Finance Models on Our Platform:
The early payment solution provides early payment to the supplier or seller based on confirmed receivables. Our platform supports both reverse factoring and dynamic discounting variants. With reverse factoring, a financial institution will provide financing to the supplier and for that the supplier is discounted. Alternatively with dynamic discounting the buyer's funds are used for the early payment of the invoices. Depending on when the invoice is settled, the supplier is discounted.
PO & RA Financing
Agreement between the Supplier and the Financial Institution allow Suppliers to receive financing at competitive conditions, based upon genuine Trade Finance documents from Buyers, which are connected to the ASYX Platform. A small effort on the part of the Buyer (sharing the information of Purchase Order and/or Receiving Advice documents) generates direct benefits for Suppliers, who can improve working capital and optimize financing cost.
Partnership between the Seller and the Financial Institution allow pre-agreed distributors to extend their payment terms by purchasing the receivables of the seller:
- Financial Institution offers the distributor the opportunity to extend their payment terms regarding the invoices sent by the seller.
- Not mandatory for Distributors to be customers of Financial Institution or open any accounts
The distributor finance offering is structured as “Late Payment”
- Distributor gets short term funding; at attractive rates, without using your own credit lines, and without paying high working capital funding costs to Financial Institutions
- Off-balance sheet funding solution
- Financial Institution takes payment risk on the Distributor
The Late Payment Platform generates benefits across the Supply Chain. Offering the distributor the possibility to extend its payment terms will improve his working capital position allowing the seller to increase its sales.
Agreement between the Seller and the Financial Institution allow the Seller to receive early payment of invoices at competitive conditions, based upon approved invoices from the Buyer (distributors), which are connected to the ASYX Platform. Risks are lower for the Financial Institution, since they have additional invoice information compared to regular Factoring, where the Financial Institution does not have this clarity.
A small effort on the part of the Buyer and Seller (sharing the information of the approved invoice) generates direct benefits for the Seller, who can improve working capital and optimize financing cost. The incentive for the Buyer to approve the invoice is funding (Late Payment to the Financial Institution), which gives the Seller access to Factoring under favorable conditions.
Islamic banking or Islamic finance is more commonly known as sharia-compliant finance and is a form of banking or financing activity that complies with the Islamic sharia laws. It's practical application is through the development of Islamic economics.
Although there are many modes of Islamic banking/finance, like Mudarabah (profit-sharing and loss-bearing), Wadiah (safekeeping), Musharaka (joint venture), Murabahah (cost-plus), and Ijara (leasing), in Indonesia the application on these matters are still limited.
ASYX has a range of resources and experts available, that will enable us to support businesses who are interested to apply Islamic finance.