Setting the Record Straight on Supply Chain Finance

Since the beginning of trade, the basic negotiation points of any purchase have been the same: what is the price, who owns the goods, when/how does ownership transfer, and when/how will payment take place. The purchaser wants the lowest price and to pay as late as possible in the manner that is easiest for them, and the seller wants to receive payment as quickly as possible. Both parties want all of this to occur while simultaneously guaranteeing a reliable flow of quality goods.

Supply chain finance tackles the last of these negotiating points – when and how payment is made. Take a small or medium sized supplier of goods, for example. They have negotiated price and title transfer terms that work for their business, and they have managed to get their customer to agree to 60 day payment terms. Depending on the industry, these terms may be reasonably standard, the result of fantastic negotiating, or maybe just an act of God.

In any event, the supplier still has obligations to meet before receiving payment from their customer – things like buying inventory, paying rent, paying employees, etc. The question is how they can convert accounts receivable (what’s owed for what has already been invoiced) into cash to meet those obligations.

Most small or medium sized businesses have a few options:

Equity – This is generally accepted as the least efficient and most costly option.
Bank Loan or Line of Credit – If the bank is willing to lend a loan, it will likely need to be secured by the assets of the business. If a company trends more toward the “small” side, it may even need to be secured by personal assets.
Factoring – This will often carry a high rate of interest, will likely carry strict rules and limits and will usually advance only 70% to 80% of the value of the A/R. It’s also likely that late payment or dilution could force a supplier to repurchase some of the invoices.
P-Card – A p-card program allows suppliers to be paid within a couple of days of when an invoice is approved, but it can be expansive. Typical rates range from 2% to 3% of the face value of the invoice to accelerate payment from Day 60 to something like Day 10, which translates to roughly 14% to 21% per annum. It’s expensive because there are a lot of mouths to feed in a typical p-card transaction, including the purchaser who will usually receive rebates from the issuer for one-half to one-third of the total transaction cost!
Traditional Dynamic Discounting – A traditional dynamic discounting program gives suppliers the opportunity to get paid earlier in exchange for a discount on the invoice. The discount rates sought in a traditional dynamic discounting arrangement can be very high. Note – this is different from the non-traditional dynamic discounting solution offered by PrimeRevenue, which provides the benefits of early payment without the high discount rates associated with traditional dynamic discounting. Our solution offers suppliers competitive rates that are on par with what we offer through supply chain finance (more on that below).
None of these traditional options are particularly attractive and they can all come at a high cost to the supplier.

Supply Chain Finance – A Much-Needed, Better Option for Suppliers

Supply chain finance provides suppliers the option to get paid as soon as an invoice is approved. Payment is disbursed electronically to the supplier’s bank account and covers 100% of the invoice value, minus a nominal fee. Transactions follow a true sale of receivable structure and all risk of collection or late payment is transferred to the financial institution. Full transaction details are provided to allow for cash application and reconciliation which ensures trade payables classification and no negative impact on the balance sheet. Even better, suppliers have complete flexibility to choose whether or when to advance payment.

Supply chain finance is a far more efficient source of financing than any of the alternatives available to most suppliers.

Buyers are generally going to be incented to stretch payment – they have strategic initiatives, investors looking for returns, and uses for cash as well. But, without supply chain finance, this only pushes the burden and risk further down the supply chain. When properly implemented, supply chain finance is a true win-win situation for buyers and their suppliers. The buyer can generate excess cash to invest and grow, which is ultimately a benefit to suppliers. At the same time, they can give their suppliers an extremely efficient process to accelerate their own cash flows.

Separating Bad Apples From the Bunch

Unfortunately, we live in a world where negative news tends to overshadow the positive. In the last few years, a handful of illegitimate supply chain finance programs have garnered media attention. Generally, these programs shouldn’t be defined as supply chain finance. Rather they’re some sort of complicated financing structure that the sponsor tries to call supply chain finance. Just because an organization calls it “supply chain finance” doesn’t make it so.

Let’s be clear. Responsibly implemented supply chain finance should be a transparent, low-risk solution that provides mutual benefits to all parties involved. The supplier sells their rights and interest in the receivable to a funder, typically a financial institution. All of the risk should be transferred to banks, who are well equipped to manage and monitor credit risk. Further, the arrangement should have no negative impact on the buyer or supplier’s balance sheet.

At PrimeRevenue, we champion ethical programs that are rooted in transparency. Our programs follow a direct funding model, so buyers and suppliers know exactly who is funding the program and where the money is coming from. All transactions deal exclusively with approved invoices and we fully support disclosure of supply chain finance.

So, let’s set the record straight once and for all. Observers that conflate properly run supply chain finance with non-legitimate programs are creating an inaccurate perception of supply chain finance – one filled with fear, uncertainty, and doubt. Supply chain finance is tremendously beneficial to all participants, particularly small and mid-sized suppliers whose funding options are limited.

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Stephanie Wargo

VP, Global Head of Marketing

Stephanie joined PrimeRevenue in 2015 and oversees the company’s global marketing team and strategy. With a data-driven approach, Stephanie focuses on demand generation and thought leadership to drive brand awareness, strengthen client/partner relationships, and generate new sales opportunities. Stephanie has guided PrimeRevenue through new technology releases and an evolving FinTech landscape. In addition to leading PrimeRevenue’s internal and external communications, she implemented innovative demand generation and marketing strategies to enhance the company’s overall sales pipeline.

Stephanie has extensive experience in marketing and customer success. She previously served as Vice President of Marketing and Communications at BitPay and Vice President of Client Relations and Marketing at FirstView Financial. Stephanie earned a B.A. degree in Political Science from Agnes Scott College in Decatur, Georgia.

Brian Medley

VP, Global Head of Sales

Brian joined PrimeRevenue in early 2012, after more than 20 years of sales leadership, executive-level consultant and business growth experience. As VP, Global Head of Sales, Brian leads a growing team of fintech sales professionals with a focus on developing strong customer relationships, improving sales predictability and helping PrimeRevenue enter the lucrative mid-market.

Prior to PrimeRevenue, Brian honed his enterprise software sales leadership skills at Clarus Corporation. He also served as an operations and IT management consultant for Kurt Salmon Associates. In addition to his sales and consulting background, Brian has deep experience in the financial industry having founded a successful residential mortgage broker and lending business. He is a graduate of the Georgia Institute of Technology having earned a B.S. in Industrial Engineering and Economics and M.B.A. in Global Business.

Jason Green

SVP, Global Customer Success

Jason joined PrimeRevenue in 2021 following more than two decades in the fintech/financial services industry. He brings a strong background is sales leadership due to his impressive relationship building capability as well as a successful track record in creating structure and process improvements. In his role, Jason uses his keen attention to detail to strengthen the customer experience and enhance the company’s solutions to deliver more value to clients.

Prior to joining the company, Jason held several senior level and executive roles with a focus on building and scaling sales and support organizations at both large and small companies. Jason graduated from Murray State University with a B.S in Marketing.

Matt Ford

SVP, Global Product Innovation

Matt joined PrimeRevenue in early 2015 and is responsible for overseeing all commercial, strategic and operational aspects of PrimeRevenue’s supply chain finance offerings throughout EMEA, based in Prague. He has been instrumental in gaining global alignment and developing supplier enablement processes for the region.

Matt joined PrimeRevenue following a 15-year career at Morgan Stanley, where he worked in fixed income operations covering debt syndication through bonds, EMTNS, corporate loans and other debt securitization. Notably, he set up non-core location operations in Europe (Budapest) and all lending operations in Baltimore from scratch.

Matt, who was born and raised in South East England, earned a B.S. in Sports Science at University of Teesside where he mastered the art of TEAM development and accountability as a youth international rugby player.

Dominic Capolongo

EVP, Global Head of Funding

Dominic joined PrimeRevenue in 2016, and is responsible for leading our bank and capital markets funding strategies and execution. He focuses on building global, scalable and highly efficient funding structures that maximize options for supporting PrimeRevenue’s programs. Dominic began his career as an attorney and was a partner with Kaye Scholer before joining DLJ as a senior banker. Dominic brings tremendous strategic and capital markets experience in all areas of finance having held senior positions at, among others, Credit Suisse and RBC Capital Markets in addition to DLJ. Dominic earned a JD from Fordham University School of Law and a BA from SUNY Binghamton.

Gavin Cicchinelli

Chief Operating Officer

Gavin joined PrimeRevenue as Chief Operating Officer in 2021. With more than two decades of leadership and executive experience along with a deep understanding of the payments space, Gavin provides a unique focus on improving and strengthening operational strategies and implementing GTM growth execution. He is responsible for leading transformation across corporate and operational strategies as well as building a repeatable and scalable commercial growth strategy that aligns with PrimeRevenue’s core business while delivering key adjacent growth opportunities.

Prior to joining PrimeRevenue, Gavin served as President and Chief Revenue Officer of Integrated Solutions at TSYS, a global payment processing services company acquired by Global Payments (NYSE:GPN). There, he also served as Head of Product and divisional COO. Throughout his career, Gavin has held multiple leadership positions including VP of Sales, SVP of Business Development, and President of Financial Institutions. Gavin graduated from the University of Northern Colorado, Greeley.

David Quillian

Chief Legal Officer

David joined PrimeRevenue as General Counsel in 2007. He and his team have been instrumental in successfully creating the unique legal structures that support PrimeRevenue’s multi-funder model and global funding capabilities. David is also the lead named inventor on PrimeRevenue’s two patents for Electronic Time Drafts, which allow PrimeRevenue to manage supply chain finance programs using electronic negotiable instruments as opposed to accounts receivable. Prior to PrimeRevenue, David was General Counsel at Harbor Payments, which was acquired by American Express (AXP) in 2006, and Magnet Communications, which was acquired by Digital Insight (DGIN) in 2003. He holds degrees in Economics and History from Duke University, and Juris Doctor and M.B.A. degrees from the University of Georgia.

Nathan Feather


Nathan has successfully ushered PrimeRevenue from our very early days as a visionary startup, through the financial crisis to today’s position as a thriving mid-sized leader in the cloud-enabled supply chain finance marketplace since joining PrimeRevenue in January 2006. He was instrumental in recapitalizing the company with an $80M investment led by BBH Capital Partners in 2015. Prior to PrimeRevenue, he held various financial management roles with Ariba, Freemarkets and PriceWaterhouseCoopers. Nathan holds a BS in Accounting from Pennsylvania State University.

PJ Bain


PJ has an impressive and accomplished track record as an enterprise software entrepreneur and executive. PJ has built a solid record of success with PrimeRevenue since being appointed Chief Executive Officer in July of 2009. The company has received numerous awards for growth, customer service, innovation, along with being recognized as a top employer.

PJ is a life-long software and technology entrepreneur having been involved in numerous firms in the roles of founder, executive, advisor and investor. Immediately prior to PrimeRevenue, PJ was the VP and General Manager of Exact Holding N.V. (NYSE/AMS: EXACT), a leading global provider of business software solutions. He was previously Founder and CEO of Inspired Solutions, an Atlanta-based, B2B software and services firm that grew to be the largest reseller of Exact Software in North America, later acquired by Exact. PJ holds a Bachelor of Industrial Engineering from Georgia Institute of Technology.