Atlanta—Feb. 4, 2013—WM88, a France-based importer of home decoration items, transitioned from factoring to utilize working capital benefits delivered by PrimeRevenue OpenSCi supply chain finance (SCF).
“Having access to liquidity that is provided by the PrimeRevenue OpenSCi supply chain finance solution is of tremendous value to us,” confirmed Bernard Soyer, Accountant, WM88. “We used factoring previously. That technique was not only expensive but we were able to receive only 90 percent of the invoice value upfront since the rest was used to offset the bank’s risk. However, when we transitioned to supply chain finance we realized the benefits we had been missing all this time. We now receive full payment at a rate much lower than the rate that was charged when we factored our receivables.”
The PrimeRevenue OpenSCi supply chain finance solution enabled WM88 to accelerate cash flow by way of selling customer-approved invoices on the OpenSCi platform. The platform also provides users with the ability to view customer-approved invoices online and to track maturity payments, including adjusting existing credit memos and accessing associated reports for audit purposes. Being a user of the Auto-Trade facility on OpenSCi, WM88 is able to sell invoices at a pre-determined frequency without having to log-in manually to perform the trade to receive early payment.
“WM88 is a classic example of why companies that used factoring will transition to supply chain finance,” said Eric Riddle, Vice President and General Manager for Europe, PrimeRevenue Inc. “We have many companies using our OpenSCi platform with experience similar to WM88. The cash flow advantage of early invoice payment provided by our OpenSCi supply chain finance solution addresses many of the negative challenges that factoring users experience. PrimeRevenue provides the most comprehensive, transparent supply chain finance solution to complement the efforts of participating companies to speed cash flow and optimize working capital.”