Demica, the market leading provider of specialised working capital solutions, announced today that it is teaming up with Hitachi Information Systems Ltd, a major application solution company, and Risk Monster, a provider of credit ratings for Japanese companies, in a strategic partnership. Hitachi will distribute and support Demicaâs Citadel range of solutions throughout Japan. Through this agreement with Hitachi Information Systems, Demicaâs three Citadel platforms: for Supply Chain Finance, Trade Receivables Securitisation, and Invoice Discounting, will be made widely available to Hitachiâs clients throughout the Japanese market. Risk Monster will collaborate with Demica to track receivables data and performance history to enhance their credit management outsourcing services.
Following on from the recent announcement by the Japanese Government of a change to the law regarding the treatment of receivables, trade receivables securitisation transactions will become a real prospect in Japan by 2009. Demicaâs extensive knowledge and experience in trade receivables securitisation transactions has at its foundation the Citadel ASP platform. Citadel ASP has the functionality to monitor and report on the substantial volumes of trade receivables information required for a successful securitisation transaction. The web-based platform offers the ability to track individual invoices across multiple sales ledgers, facilitating client reporting to rating agency standard, with minimal disruption to local operating companies.
The key to a successful supply chain finance programme is the ability to process high volumes of payables, both securely and without the need for manual processes. Citadel SCF brings significant cash-flow benefits to corporates, both buyers and suppliers, and a simple, automated transaction management solution for lenders. A fully-hosted ASP solution, requiring no on-site installation, Citadel SCF offers a scaleable solution for lenders to offer on-demand supply chain financing to their clients.
Citadel ID is an innovative risk management solution that offers providers of Invoice Discounting solutions the ability to access invoice-level control for all related transactions â driving overall business performance. The Citadel ID solution enables clients to generate additional revenue through business expansion; increase operational efficiencies, generating significant cost savings; and introduce greater risk management capability.
Citadel, which is designed to operate seamlessly across multiple jurisdictions, time zones, currencies, languages and operating systems, currently runs over â¬10.5 billion worth of rated transactions for a diverse range of multi-national clients. The partnership will draw on the specific strengths of each partner to bring additional benefits to clients of Demica, Hitachi Information Systems and Risk Monster alike.
âWe are delighted that, through our collaboration with Hitachi Information Systems and Risk Monster, we will be able to provide access to Citadel to companies throughout Japan. Hitachi and Risk Monsterâs clients will benefit from access to improved financing terms, and a complete set of solutions they can leverage to enhance their trading relationships and ultimately, improve their competitive advantage,â says Tatsuya Kuboi, Executive Vice President, Demica.
âOur strategic partnership with Demica demonstrates our shared vision of bringing world-class working capital solutions to Japanese corporates.â says Shigeo Furuta, General Manager of Financial Solution Services Division, Hitachi Information Systems. âWe look forward to the benefits that our collaboration with Demica will bring our clients.â
Kenichi Sugano, President, Risk Monster comments: âDemicaâs position as market leader in trade receivables reporting, coupled with Risk Monsterâs expertise in the Japanese market, will enable us to offer our clients a truly accurate ratings service.â