This post originally appeared on Trade Financing Matters.
Demica is owned by J.M. Huber, a diversified multi-billion dollar family-owned company headquartered in the U.S. with operations and staff located globally. I had to ask what a company of this size is doing owning a vendor in the supply chain finance market. After all, J.M. Huber is a diversified multi-national company dealing with engineered materials and natural resources. Huber established a financial services division in 1997 and started working with Demica in 2001. In 2002, they acquired the platform. So they have held the stand-alone company for 12 years.
But just what does Demica do?
Demica’s three core products are focused on supporting supply chain finance, invoice discounting, and trade receivables securitization. Demica currently reports on approximately $13 billion of outstanding receivables on a daily basis.
1) Supply Chain Finance is supported by Citadel SCF, a fully hosted, web-based trade finance solution accessed and operated by a secure web interface. Alternatively, the software can be licensed and installed, although nearly all users prefer the hosted version. Currently the solution is white labelled by three banks as well as being used by a number of corporates as a hosted solution.
2) Citadel ID is an invoice discounting platform offered as an installed product for invoice discounters and factors.
3) Finally, Demica supports receivable securitization programs for banks with Citadel ASP. Demica acts as the reporting agent for these programs. Their primary activity is to support multi-bank receivables securitisation programs. They monitor and report back to the seller and all funding parties on a daily or weekly basis on the eligible invoices capable of being purchased by the banks. Demica works with over 30 banks.
Read the rest of this post on Trade Financing Matters.