Kyriba Unveils New FinTech Supplier Financing Solutions

Paris - 13 October 2015

Companies Realize New Sources of Liquidity Through the Kyriba Platform

Kyriba Corp., the Franco-American financial technology corporation and global leader in Treasury Management Systems and Risk Management, introduced today “Kyriba Invoice Financing,” a new supplier finance offering. Kyriba’s award winning software-as-a-service now also optimizes working capital, improves free cash-flow, and provides solutions to reduce disruption to the global supply chain. Invoice financing extends Kyriba’s leadership in the field of corporate payment solutions.

According to Altares data, supplier credit has become an essential source of financing for companies globally: in France alone, total outstanding payments for businesses amount to €635 billion compared to €685 for short term bank loans. Over the past year, a tougher approach to inter-company payments has led to a 13.6-day increase in supplier payment delays, which accounted for €4 billion at the end of July 2015 (+11.7% compared to July 2014).

In this context, working capital requirement management is essential for the development of small to medium enterprises and major corporations alike.

Jean-Luc Robert, CEO of Kyriba, explained: “Today’s announcement is game changing for any business who relies on suppliers to grow, serve and supply its customers. With this new offering, Kyriba is unlocking greater flexibility for companies of all sizes, giving them greater control over their finances, without the penalties that usually come with reverse factoring. In a rigid and highly regulated sector, Kyriba has demonstrated quick and agile execution, harnessing technology to promote innovation in a new ecosystem with significant development prospects. For the past 10 years, we have been forging solid partnerships with our clients and with today’s launch, we are taking a step further to create a more flexible financial environment to help companies of all sizes grow their business.”

Kyriba Invoice Financing is based on three new features:

  • Dynamic discounting: Buyers can leverage Kyriba’s technology to determine their cash surplus, and use their cash surplus to assist their suppliers’ working capital by offering early payments in return for a discount.
  • Reverse factoring: Buyers can keep or extend their payment terms, and at the same time leverage Kyriba’s technology to enable their financial partners to provide early payments to their suppliers. This is a win-win situation: the supplier enjoys preferential terms negotiated by its buyer, and has the opportunity of getting better financing options. The buyer is able to keep or improve its DPO’s, and secure its supply chain while optimizing its working capital requirement
  • Reverse factoring with credit extension: Reverse factoring is coupled with a grace period which is granted by the financial third party. This allows the buyer to extend their payment terms past the due date, and the supplier can get paid on a future due date or has the option of getting an early payment with a discount.

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