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Kyriba Working Capital

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Optimize Working Capital

Kyriba helps CFOs and senior strategic leaders boost free cash flow and improve EBITDA with supply chain finance solutions that aid in extending payment terms and enable better working capital management.

Our robust working capital programs combine scalable technology, expert teams and key services such as working capital analysis, program design and supplier on-boarding.

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Boost Free Cash Flow and Profitability

To combat the mounting pressures of generating additional cash flow and improving bottom line value with return on investments, Kyriba provides dynamic discounting and supply chain finance solutions that benefit both buyers and suppliers, and empower treasury and procurement to work hand-in-hand to deliver working capital improvements.

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Making the Business Case for Supply Chain Finance & Dynamic Discounting
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When we looked into it, we really found that supply chain finance and dynamic discounting are a win-win situation for all parties. On the supplier side it provides invoice transparency [and] reliability payments. On the buyer side [...] it provides the client the ability to hold onto their cash."
Kristopher Kagan Vice President - Finance/HR, Scientist.com
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Supply Chain Finance

To free up capital tied up in working capital, organizations can utilize supply chain finance, also known as reverse factoring.

Supply chain finance gives suppliers the flexibility to “sell” approved invoices to financial institutions for a discount that is dependent on the credit risk of the buyers and is agreed upon in advance.

Using supply chain finance as an alternative means of financing helps buyers negotiate longer payment terms and can help increase free cash flow.

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Dynamic Discounting

Early payment discount programs enable buyers to generate high returns on free cash, reduce costs through discounts and grow profit and EBITDA margins.

The main benefit of moving from a standard manual discounting program to a wider discount window with dynamic discounting is that the sliding scale model captures all possible discount opportunities, thus maximizing costs and increasing the amount of free cash available for investment.

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24% of Kyriba customers say improved working capital management has been the biggest business benefit of choosing Kyriba so far.

Source: TechValidate, 2019

Benefits of a Working Capital Solution

For suppliers, both supply chain finance and dynamic discounting result in:

  • Increased cash flow (supplier decrease DSO)
  • Enhanced cash visibility/predictability
  • Access to an additional source of funding
  • Reduced financing cost depending on credit rating
  • Off-balance sheet financing that doesn’t impact supplier debt metric
  • Remittance information at no cost with reduced account receivable queries

For buyers, the benefits of supply chain finance and dynamic discounting differ slightly. Both programs result in enhanced cash visibility/predictability, reduced account payable inquiries and improved critical supplier relationships. Supply chain finance also increases free cash flow and can reward bank relationships, while dynamic discounting can increase the risk-free return on short-term cash investments substantially, improve gross margin and reduce COGS.

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