Supply Chain Finance

SCF Program Workflow

The Challenge

  • Many multi national corporations have been looking to globalize a supply chain finance program which has started successfully in the U.S. and Europe since after the financial crisis 2008; therefore, this is going to be part of a Corporations’ strategy such as you, being a major buyer to stabilize your supplier base as well as free up internal sources of working capital, in response to the widespread dislocations in supply chains worldwide as a result of the rising geopolitical challenges in present times.
  • The need became urgent at the start of 2020, especially for the Asia Pacific business, when the COVID-19 crisis further rattled supply chains amid country lockdowns and movement restrictions in the region, prompting suppliers and vendors hurt by a slump in business to ask their buyers for better payment terms.
  • With majority of business taking a hit as a result of the lock downs and travel bubble, freeing up internal working capital also became even more pressing for the major corporations to meet its operational costs.
  • Accordingly, ensuring a stable and efficient supply chain to ensure timely procurement of materials became even more critical.

The Solution

  • Hyperclick Atlas knew it had to act quickly, and in collaboration with its technology partner, recently launched a digital-based platform of supply chain finance (SCF) program across South East Asia with the expectation to support total eligible procurements of RM100 million across more than 250 suppliers in next 3 years.
  • The first phase of the rollout is currently under way, to take place across Malaysia – it is projected to be completed in 12 to 16 weeks to market.
  • Through the SCF Program, your suppliers can opt to be paid earlier, as hyperclick can convert outstanding invoices into cash, at a discount. They can also leverage over their Buyer’s outstanding credit quality to access a sustainable funding through the hyperclick SCF Program.
  • With the program, your Corporation’s suppliers who opt for the program are now able to receive payment as early as seven days from the invoice date, without having to wait until the payment maturity date.

The Result

  • Generate side revenue from the Treasury income between 3% to 5% per month on discounted invoices. 
  • Free up a substantial amount of your working capital each year to support your operational expenses. 
  • Stabilize the supply chains to facilitate timely procurement of materials across your various divisions. 
  • Strengthened relationships with suppliers by providing them with the option to be paid much earlier.
  • Allow suppliers to discount invoices as convenient access to an alternate source of funding.
  • Reduce administrative costs using standardized payment terms and processes, as suppliers switched from manual invoicing to electronic payments.
  • Improve transparency through hyperclick fully digitalised electronic platform which provide your Corporation with full visibility of approved invoices.