Corporate treasurers and finance teams are facing a convergence of cash management and trade. Through the increase of corporate finance responsibilities and the greater internationalization of business, CFOs and Treasurers are increasingly demanding integrated solutions that align cash management, supply chain finance, and trade finance into a single offering. To meet this need, Kyriba has extended its cash management solution to include trade solutions, offering capabilities for both supply chain finance and trade finance.
Kyriba Supply Chain Finance
With Kyriba, CFOs and Treasurers can achieve greater accuracy in forecasted cash positions. With higher confidence and more certainty in determining excess cash and liquidity, corporates are empowered to make more effective financial decisions, such as initiating and extending supply chain and trade enabling programs. Kyriba also offers complete payment workflows from payment initiation, approval, and transmission to banking partners – for a true straight-through-process.
To help corporate finance teams improve cash and working capital optimization, Kyriba features a supply chain finance solution that includes both reverse factoring (payables financing) and dynamic discounting. Kyriba’s dynamic discounting module supports buyers in managing self-funded early payment discount programs for suppliers. Dynamic discounting programs enable buyers to earn risk free returns on their available liquidity, while offering suppliers the opportunity to receive cash earlier than the contracted payment date. As the buyer uses their own cash, it represents a ‘cash optimization’ opportunity for the Treasurer, since the effective rate of return on the early payment would be superior to other available alternatives.
The reverse factoring module, also known as payables financing, connects buyers, suppliers, and banks on one platform to support the early payment of invoices to a company’s suppliers. The module provides visibility to invoices that the buyer approves for payment, enabling suppliers to opt for early payment of the approved invoices – at a favorable discount compared to financing they could receive on their own. Pre-arranged financing is provided by the banks that participate in the buyer’s supply chain finance program. As a multi-bank portal, Kyriba helps alleviate credit exposure and credit limit issues that can constrain a single-bank supply chain finance program.
Kyriba Trade Finance
A multi-bank solution that manages the issuance and tracking of incoming and outgoing bank guarantees as well as standby, import, and export letters of credit soon to be added. Through partnership with CGI and the integration of CGI Trade360 and Kyriba Enterprise, corporate customers have a dashboard-driven workflow to manage internal approval and release processes for trade finance instruments, as well as offering a detailed transaction history. Kyriba Trade Finance leverages Kyriba’s bank connectivity hub and SWIFT connectivity to securely interface and deliver messages to both domestic and international banks.