SupplierPlus is a buyer-led Supply Chain Finance (SCF) platform that optimizes working capital allocation in trade relations. More simply put, the company simplifies invoice financing between buyers, suppliers and financiers. Before becoming a fully-fledged SCF platform, the company started out in 2015 as a crowd-funded invoice finance platform. Soon enough, it became evident that crowdfunding would not do the trick – large buyers needed access to far greater volumes and lower prices, which could only be offered by financial institutions. This led them to ultimately creating a next generation platform fit for handling the sophisticated needs of bluechips on the one hand and highly regulated banks on the other. Today, SupplierPlus operates a multi-bank platform that allows corporations to finance their entire supply chain. The solution taps into the strong credit profiles of the large buyers to make competitive financing available to their suppliers. Buyers get to improve their payment terms, pricing and delivery stability, while suppliers get paid early. Reflecting on SupplierPlus’s time in the Lighthouse Program, COO Uve Poom shared, “Lighthouse represents a quality stamp. It provides validation from a globally respected financial institution called MasterCard. Prior we had already established contact with most banks in the region, but the program added wind in the sails.” Following the trends in the industry, Uve adds that SCF is an in-demand industry right now, “There is a lot going on in Western Europe and North America, and there are key trade markets in Asia as well. Buyers tend to take more strategic control of supplier finance there. We believe this trend will reach Northern Europe and Central Eastern Europe just the same.” Uve believes that there is a strong need to improve awareness of SCF in these markets. During any economic crisis – and the one caused by Covid-19 is no exception – banks are inclined to cut back on SME credit, while interest concentrates with large corporations. However, large corporations also tend to extend invoice payment terms in this setting. This means that large companies can, and indeed should, take more responsibility for supplier finance. They otherwise face price hikes, supply instability and poorer competition as their supplier base is limited to companies that are financially strong enough. “In economic uncertainty, banks really appreciate the low-risk model that we propose. Engagement from institutions is going up. Suppliers need this more than ever; banks can piggyback the credit profiles of larger customers; and buyers gain bargaining power in their supplier relations. We’re in a counter-cyclical business,” Uve explains. In short, the crisis creates an opportunity for SupplierPlus to further benefit the market with their platform, creating an all-around win-win solution. Alumni Spotlight: SupplierPlus
Before becoming a fully-fledged SCF platform, the company started out in 2015 as a crowd-funded invoice finance platform.
Uve Poom
COO