Payables Financing / Reverse Factoring
For most corporate finance departments, minimizing counterparty risk in the supply chain is a critical strategic objective and imperative to the organization’s overall productivity and financial results. Finance and Treasury increasingly work together to ensure Cash Management, Working Capital Management and Supply Chain Finance are synchronized. All groups are responsible for improving working capital and minimizing counterparty risk.
To help corporate finance teams collaborate to achieve their objectives, Kyriba has introduced the Payables Financing/Reverse Factoring Module, the first component of our integrated Supply Chain Finance solution for corporate treasury and finance. Supply Chain Finance complements Kyriba’s technology leadership in Cash, Treasury, and Risk Management.
Kyriba’s Payables Financing Module (also known as Reverse Factoring) is a scalable, multi-bank portal that connects Buyers, Suppliers, and Banks on one platform to support the early payment of invoices to a company’s suppliers. The module provides visibility to invoices that the Buyer approves for payment, enabling suppliers to opt for early payment of the approved invoices – at a favorable discount compared to financing they could receive on their own. Pre-arranged financing is provided by the banks that participate in the Buyer’s supply chain program. As a multi-bank portal, Kyriba helps alleviate credit exposure and credit limit issues that can constrain a single-bank Supply Chain Finance program.
Within the solution, the Buyer has the opportunity to access additional unsecured liquidity and improve working capital by extending payment terms while still offering competitive financing solutions to Suppliers who elect to receive early payments. This ensures the financial health of its supply chain minimizes counterparty risk.
Although Kyriba’s Payable Financing can operate on a stand-alone basis, the module is fully integrated with other Kyriba modules, including the Payment Factory, Financial Transactions, and Cash Forecasting – to deliver a powerful cash, treasury, risk, and working capital solution. Kyriba also integrates seamlessly with the Buyer’s existing
