Flexible Supply Chain Financing Options with PrimeRevenue

PrimeRevenue is one of the grand daddies in the supply chain finance space, having started in 2003 with a bank-independent SCF platform.  PrimeRevenue described themselves back then as

“a supply chain financial services company that provides automated Supplier Finance, Payables Presentment and Financial Settlement services to Global 2000 organizations and their Suppliers.”

What makes PrimeRevenue somewhat unique in this ever crowded field of early pay solutions for corporations is that they deal in a world of credit.  Their approved trade payable program generally involves the use of third party credit (not always, as corporates can self-fund, but most choose not to as the commitments are too big).  Contrast this with the dynamic discounting world where no credit is involved if corporates use their own balance sheet.

The other unique feature of PrimeRevenue is they not only provide the platform (now called OpenSci) but also provide funding through their financial institution partners and onboarding services to support programs.

PrimeRevenue has successfully processed receivables finance transactions in many jurisdictions, including the United States, Canada, UK, Germany, France, Sweden, South Africa, Australia and China, with perfection of interest in the receivable. PrimeRevenue has provided over $125 Billion in financing during the last seven years to 14,000+ suppliers in 40+ countries and 17 currencies.

The company provides its SCF solution, called OpenSCi, to the distributed supply chains of Global 2000 organizations and a network of financial institutions that support them.   OpenSCi is a suite of apps which include Analytical tools (SCiMap), onboarding tools (SCiEnable), SCiSupplier (supply chain finance platform) and SCiCustomer (early payment without approval of invoices).

The key to PrimeRevenue is they enable flexible financing options.

Flexible and Multiple Financing Structures

PrimeRevenue offers several multi-bank models for managing programs including Bank balance sheet lending, syndication among a group of banks, and securitization directly to the capital markets.

1. Global 2000 Buyers can give clear instructions to PrimeRevenue as to which of their lead banks they would like to participate in the program.

2. Buyers who are near investment grade may not have the same bank lending capacity, so here is where PrimeRevenue can add significant value. Based on their funding partner banks and knowing their limits (tenor, currency, sectors, clients, etc.) they can help source funding. A supplier is assigned to a bank.

3. Electronic draft product (called SCiDraft™) that can be sold to bank and investors.   SCiDraft provides the electronic issuance, negotiation, exchange, and payment of negotiable time instruments.

For those corporates, especially less than investment grade, looking for funding options, PrimeRevenue is not dependent on the funding policies and portfolio management concerns of any single bank, and typically can find a global or local bank to participate no matter what jurisdiction or currency.

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First Voice

  1. Gayathri G:

    Do we see banks offering Asset Based Lending within the SCF umbrella to near investment grade corporates?

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