Company: Compagnie Générale d’Affacturage (CGA), a wholly-owned subsidiary of Groupe Société Générale
Industry: Business trade credit
Headquarters: Saint-Denis, France
Solution: Supply Chain Finance
“By combining Kyriba’s feature-rich functionalities with our industry expertise, we offer our customers innovative and quickly operational Supply Chain Finance solutions, in a global context.”
About Compagnie Générale d’Affacturage (CGA)
CGA is a specialist in the field of business trade credit (accounts receivable financing, management and collection of receivables, and hedging against overdue payments), as well as universal factoring, and has developed a wide range of products to meet the needs of a variety of businesses. CGA has been a wholly-owned subsidiary of Groupe Société Générale since 1974.
CGA is the fifth-largest player in the French factoring market. It operates globally, through the network of Groupe Société Générale subsidiaries.
Noticing that companies are increasingly looking for innovative, global solutions to finance their suppliers, CGA decided to strengthen its range of supply chain finance (SCF) and reverse factoring solutions for corporations and their global suppliers. As the SCF programs gained popularity and the volume of financing on these programs increased, it was critical for CGA to automate and securely manage all financial flows to provide its customers a robust and feature-rich platform.
In searching for a robust supply chain finance solution, CGA’s key requirement was to support true globalization for customer/supplier workflows. This was critical, as CGA’s solution had to have the ability to manage operations in a multi-country context, with multiple principals, language, currency, and banks to support liquidity to the clients supply chain. It was also essential that the solution be offered, as one instance, by all factoring entities of Groupe Société Générale (11 entities based in 11 countries), under the coordination of CGA. In addition, the platform had to be web-enabled without any technical support required by CGA’s clients or their suppliers during the deployment or ongoing operations.
After evaluating various solutions, CGA chose Kyriba’s SaaS-based supply chain finance module. CGA has “white labeled” Kyriba’s SCF module as the technology solution for implementing SCF programs globally for its clients.
Kyriba’s SCF module required very little integration effort from CGA’s IT department. CGA clients have access to the same SCF functionality as Kyriba clients, and Kyriba’s security protocols ensure clients’ data is secure and segregated.
The robustness of the Kyriba platform, in addition to its deep functionality and SaaS deployment model, enabled CGA to establish strong, strategic relationships with its clients. Kyriba has more than 700 clients in more than 50 countries using various modules of its platform. The platform is audited annually and is subject to the SSAE 16, SOC 1 and SOC 2 regulations. Furthermore, security levels and system availability are consistent with current banking regulations.
Kyriba provided CGA with a highly secure, scalable platform. Synergies between SCF features, treasury management and payment functions are also an asset for CGA, which understands the interdependency of the treasurer’s functions.
The Supply Chain Finance Platform
Kyriba’s supply chain finance platform includes both payables financing (reverse factoring) and dynamic discounting.
Reverse factoring is a multi-bank portal that connects buyers, suppliers and banks within a single integrated platform that enables early payment financing of suppliers’ invoices. The solution delivers complete visibility on invoices approved by the buyer, allowing suppliers to request early payment financing of one or more invoices from participating banks or factors. As a multi-bank portal, Kyriba helps to reduce credit risk and credit limit constraints related to a single-bank program.
Kyriba’s dynamic discounting module supports buyers in managing self-funded early payment discount programs for suppliers. Dynamic discounting programs enable buyers to earn risk free returns on their available liquidity, while offering the opportunity to suppliers to receive cash earlier than the contracted payment date. As the buyer uses their own cash, it represents a ‘cash optimization’ opportunity for the Treasurer since the effective rate of return on the early payment would be superior to other available alternatives.
Within Kyriba, suppliers are offered a discount rate by the buyer that is dynamically calculated for the term of the invoice, meaning the earlier the payment the greater the discount. This is a voluntary election by suppliers, where they can more effectively plan for their own working capital needs. In addition to the opportunity to optimize cash returns, the workflow automation within Kyriba significantly reduces the administration time and effort for the Buyer to manage a global Dynamic Discounting program.
About Kyriba Enterprise
Kyriba’s flagship product, Kyriba Enterprise, is the most adopted Software-as-a-Service treasury management solution in the global market. Fully in the cloud, Kyriba Enterprise offers the most breadth of any treasury management solution, solving the cash, treasury, and risk management needs of all sizes of treasury and finance organizations.