GT Nexus starts new supplier funding program

The program, offered in conjunction with trade finance solutions provider SeaburyTFX, bases funding decisions on trading partners’ performance history, not the buyer’s or supplier’s credit.    The global visibility and supply chain execution software provider GT Nexus has created a new funding program with trade finance solutions provider SeaburyTFX to get suppliers access to low cost capital.
   The program bases funding decisions on the trading partners’ performance history, instead of the buyer’s or supplier’s credit.
   “The high performance rate of the overall GT Nexus network of transactions makes it an attractive portfolio for securitization in the financial markets,” said Robert Lin, president and chief executive officer of SeaburyTFX. “Unlike traditional programs working with individual banks or providers on a transactional basis, funding of this program is secured by a pool of transactions on the platform.”
   Buyers and suppliers in the program are able to remove supply chain capital-related barriers that can cause delays or impact customer service, GT Nexus said in a statement.
   “This type of program reduces both cost and risk in our supply chain while improving overall performance,” said Harry Gaffney, chief financial officer of Charles Komar & Sons, a designer and distributor of more than 100 sleepwear and intimates brands. “Our suppliers can access funding to run their business when they need it most, at key times within the transaction lifecycle – as early as order. Access to liquidity at crucial points assures the flow of supply goes undisrupted and improves our customer performance.”
   Funding is provided off-balance sheet in the program. Suppliers can obtain cash at the same rate and terms for any qualified buyer on the GT Nexus platform.
   “We can now get the funding we need earlier in the transaction lifecycle and we no longer have to wait for an approved invoice,” said Adam Sutton, president of Highland Belts & Fine Leathergoods. “Cash flow visibility and payment certainty allow us to better map out our growth. We can move forward with certainty, knowing that we will have the funds needed to buy materials and fill new orders.”
   Traditional supply chain finance programs look at a company’s profitability, cost of goods, sales figures and growth projections for the region. Collecting and interpreting data can take weeks given a lack of standards in both documentation and pricing methodologies.
   “We’re deploying big data to open up the pipeline of capital into the global supply chain by triggering faster, smarter financing decisions based on deep analytics on the GT Nexus platform,” said Sean Feeney, CEO of GT Nexus.
   The move bolsters GT Nexus’ offerings in the sourcing and supplier space after the company merged with fellow cloud-based technology provider TradeCard in early 2013.