Each year, PrimeRevenue reaches new and larger peaks. From milestone deals to breakthrough innovations, each year’s successes prove larger and more transformative than ever before.
PrimeRevenue climbed many mountains in 2018, and as we enter 2019, I want to reflect on some of last year’s achievements – both PrimeRevenue’s and our clients’.
In 2018, we grew our existing customers with a net retention rate of 116 percent, reaching a world class metric and directly correlating to the VALUE we are continuously delivering to our customers. They continually and intentionally choose to partner with PrimeRevenue to strategically support their working capital initiatives with supply chain finance.
This momentum will be a key driver of success as we move into 2019 and begin preparing for our next summit.
Ascending the Mountain Tops
2018 was a landmark year on the heels of unprecedented growth over the last three years. The business itself grew 50 percent from 2016 to 2018 and the amount of trade payments processed more than doubled over that time, growing from an annual volume of $100 billion in 2016 to more than $200 billion in 2018. We’ve added around 30 new funders to the platform in our effort to grow and diversify our funding options — growing from 50 funding partners in 2016 to 80 in 2018.
As our portfolio grows, it translates to more companies having access to improved cash flow – on both sides of the supply chain.
In 2018, PrimeRevenue advised buyer clients on $18.2 billion in free cash flow and supported suppliers through $103.7 billion in early payments. Suppliers traded an average of 85 percent of total invoices uploaded to the platform in 2018 and, on average, suppliers received payment 80 days early.
Continued Focus on the Mid-Market
One year ago, I wrote a blog post on how it’s time to expand the power of supply chain finance to the mid-market. Mid-sized companies, including manufacturing, food, beverage and automotive, have historically been underserved by supply chain finance providers, who have deemed them too risky, too small or too unprofitable. Meanwhile, growth has been a challenge for these businesses. If mid-market companies want to make a strategic acquisition or invest in innovation, it typically requires taking on large sums of debt that can adversely impact their financial position.
PrimeRevenue has doubled down on its commitment to help mid-market companies overcome this challenge. Over 50 percent of new clients added to our roster in 2018 fall into the mid-market category, and our funding network now includes approximately 24 regional and community banks that are eager to fund and grow supply chain finance programs with these businesses. In 2019, we will continue to expand our presence and deliver cash flow improvements that will help mid-market companies reach their growth objectives.
Staying the Course
There’s a lot of speculation about the economic challenges ahead in 2019. What’s not left to speculation, however, is the role supply chain finance can play in navigating volatility. Better cash flow and improved working capital gives companies the liquidity they need to mitigate market risk and achieve strategic growth initiatives. In other words: whatever your summit may be, PrimeRevenue is ready to help you reach it in 2019.
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Published January 31, 2019
