Demica launches innovative Supply Chain Financing tool - Citadel SCF

London, UK - 12 September 2006

Buyers, suppliers and lenders to benefit from transparent, cost-effective supply chain finance solution

Demica is today launching Citadel SCF, an innovative supply chain finance tool bringing unprecedented cash-flow benefits to buyers and suppliers, and a simple, automated transaction management solution for financiers. The supply chain finance solution, based on Citadel- Demica’s robust reporting platform that is already well proven in the invoice finance markets worldwide- meets growing corporate demand for financially efficient supply chains and offers benefits to buyers, suppliers and lenders alike.

Companies and their suppliers are under conflicting pressures to improve payment terms, reduce prices and improve cash flow efficiencies. Supply chain finance solutions aim to improve the financial efficiency of the supply chain, resulting in both suppliers and buyers enjoying a substantial reduction in the cost of their working capital.

Without secure automation and the ability to process high volumes of payables, the key efficiencies of a supply chain finance programme would be lost. Citadel SCF streamlines the execution of a supply chain finance solution through the complete automation of the financing process.

Citadel SCF provides a transparent window onto the financing process, giving the buyer, supplier and lender the capacity to track individual invoices, payments and final settlements in real time. The platform allows the definition of invoice eligibility and selection criteria; and collects, consolidates and displays all payables data from single or multiple buyers or suppliers in both a consolidated and granular form. As a fully-hosted ASP solution, requiring no on-site installation, Citadel SCF offers a scaleable solution for lenders to offer on-demand supply chain finance to their clients. There are currently in excess of €10.5 billion of rated transactions running on Demica’s Citadel platform.

Phillip Kerle, Chief Executive Officer, Demica comments: “Supply chain finance is a valuable working capital finance tool and has emerged as pressure in the supply chain forces collaborative working between buyers and suppliers. With Citadel SCF, we are giving banks and corporates the means to manage a supply chain finance transaction cost effectively and we are confident of strong take-up from the market. Supply chain finance programmes offer significant benefits to both buyers and suppliers and, in many cases, enhance a buyer’s relationship with its suppliers.

“However, it is important to remember that the success of a SCF programme hinges on the real-time visibility of invoice data. Buyers, lenders and suppliers must all be in a position to monitor the status of payables at every stage of the funding process. Our solution, Citadel SCF, provides a secure, on-demand platform to enable this to happen.”

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