Valuing the Upside Impact of Supply Chain Finance for Suppliers

One of the untold stories of supply chain finance is how much value it delivers to suppliers. Often, the benefits of supply chain finance are discussed in terms of the company that’s running the program. What many don’t fully understand is the range of benefits that accrue to suppliers, which are often just as powerful and transformative, if not more so.

Every business needs working capital to run its operations. In the current climate, the need for faster, easier access to working capital has become more urgent. Companies are under constant pressure to grow revenue, improve operating margins, reduce risk and innovate – all while tectonic, disruptive shifts are occurring across many industries.

For example, we recently heard the North American CFO of a top-20 auto manufacturer comment on the rapid and massive disruption happening in his industry. He said the rate of change is making it hard to predict what an auto “OEM” will look like in 20 years. This unpredictability is causing a need for unprecedented levels of investment – incrementally $250M to $400M per year – to position the company for relevance in the future. The disruptions include electric vehicles, autonomous driving and ride-sharing programs, among others. While that’s a challenging climate for big auto brands, it’s an even tougher environment for the thousands of suppliers that do business with them.

Supply chain finance exists for two reasons: to improve cash flow for buyers and to improve visibility and cash flow for suppliers. However, I would argue that the cash flow needs of suppliers are more critical in most cases – especially small and mid-size suppliers. Unlike their big, global customers, many have few options for financing. Supply chain finance is a far better alternative at a lower cost, compared to bank lines of credit or traditional factoring programs.

A core challenge in communicating the supplier-focused value of supply chain finance results from the fact that it is often correlated to a payment term extension in the mind of the supplier. It is no secret that companies want to pay slower and collect faster. I get that. If left unmitigated, longer payment terms can be harmful to suppliers’ cash flow. Numerous companies including Boeing, Rio Tinto, Diageo and Walmart have caught flack because of the damage and/or the backlash they’ve created when extending payment terms with suppliers. This doesn’t have to be, and shouldn’t be the case.

Supply chain finance solves this problem. In fact, that’s the whole point.

Let’s say you’re a supplier used to being paid by a customer 45 days after invoicing, and then that customer pushes your payment terms to 90 days. If your customer offers a supply chain finance program, you should now be able to be paid as soon as the invoice is approved. We have buyers using our platform that consistently approve invoices in as little as two days. The nominal percentage transaction fee is a small price to pay for reliable, near-immediate access to working capital that doesn’t count as debt on your balance sheet.

Even if a supplier elects NOT to advance an invoice for early payment they also get visibility into cash flow that is certain. The way our solutions work, suppliers know the date of payment and the amount of the payment. It is a certainty. In the world, outside of supply chain finance, cash flow forecasting is a guessing game.

Here are a few examples of how suppliers trading invoices on PrimeRevenue’s platform are benefiting from supply chain finance:

Funding growth and innovation. Kiddyum, a once-small maker of frozen children’s meals, signed U.K. grocery giant Sainsbury’s as a customer. Kiddyum needed immediate access to working capital to pay for production, warehousing and distribution costs to fulfill increased demand. The solution was Sainsbury’s supply chain finance program offered through PrimeRevenue. It enabled near-immediate payment of invoices, thereby providing Kiddyum the liquidity it needed to invest in growth. Founder Jane Hynes calls it “an absolute lifeline” during a high-growth period.

Weathering economic turbulence. One company, a major supplier to the world’s leading home appliance manufacturers, used PrimeRevenue’s supply chain finance platform to accelerate $25 million in cash flow during the global financial crisis. The company’s CFO says: “In a time of financial catastrophe for many companies, supply chain finance provided us the cash flow we needed to weather recessionary times.”

Lowering the cost of funding. Barry Callebaut is the world’s largest manufacturer of chocolate and cocoa and a $6 billion supplier to companies like Kellogg’s, General Mills and Nestle. By participating in their customers’ supply chain finance programs, they can get paid early and optimize working capital for a nominal transaction fee. From Barry Callebaut’s head of European treasury operations: “Besides adding a lot of value to the business relationship with our customer, it also enables us to accelerate cash flow at a low cost by leveraging the customer’s strong credit rating. And since it is a true sale of receivables, there is no additional financial debt on our balance sheet.”

Here at PrimeRevenue, the numbers speak for themselves. Thousands of suppliers use our platform to accelerate cash flow and improve their working capital positions. This past March more than $7 billion in invoices were traded. Many of these suppliers are small and mid-size businesses. For most, expediting cash flow any other way would be expensive and have a negative impact on the balance sheet.

And supply chain finance – as we do it here at PrimeRevenue – is a true and equal win-win for buyers and suppliers. We’re giving suppliers of all sizes the cash flow improvements they need to be successful in today’s business climate. Let’s not forget that part of the story.

By PJ Bain
Published April 27, 2017

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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.