Why Significant Disruption in Automotive Necessitates New Methods of Financing

The disruption happening across the automotive industry is historic. Innovations that seemed far-fetched a decade ago aren’t just reality – they’re the future of auto manufacturing as we know it. Need proof? Just look at the headlines coming out of CES 2018, the world’s largest consumer electronics tradeshow. Forget Google or Amazon’s latest gadget. The spotlight is on in-vehicle technology.

There are three major disruptors changing how cars are manufactured, driven and owned: electric vehicles, autonomous driving and smart mobility programs (ride-hailing services, vehicle sharing programs and others). Each requires massive influxes of capital to fund research and development, acquisitions and changes to business models. At the same time, auto manufacturers still need the capital to maintain a steady flow of new features and upgrades to current production lines. The days are numbered for those manufacturers that can’t do both.

For those less familiar with the forces buffeting the future of cars, I’ve provided a primer on these disruptive innovations. For those already in the know, skip to the section on how we suggest automotive ecosystem players pay for all the change they are facing.

Electric Vehicles – The move to battery-powered and hybrid cars is brisk. Take Volvo’s recent announcement that by 2019, its new cars will all be hybrid or electric. General Motors, Volkswagen, Mercedes, Audi, BMW and Ford have also recently announced ambitious EV plans. And China, the largest electric car market in the world is China, recently edged out the U.S. in the number of electric vehicles on the road. The country also plans to scrap internal combustion engines entirely by 2030.

Autonomous Driving – There is significant momentum behind self-driving cars and trucks. Companies like Otto and Waymo are already using and/or road testing these vehicles in several states. Volvo announced that its unsupervised autonomous cars will be available by 2021. Meanwhile, the line between auto manufacturers and technology companies is blurring. At CES in Las Vegas, Intel announced its 100-vehicle test fleet and showcased its first autonomous car. Volkswagen and Hyundai Motor Co. have announced a partnership with self-driving startup Aurora Innovation with the goal of producing self-driving electric taxis in major cities.

Smart Mobility Programs – Zipcar, Uber, Lyft (among others) have shifted the dynamics of how people “consume” automotive. Today, Audi, BMW, Daimler and GM are testing out programs to rent their cars hourly or daily. Other pilots include Ford launching the Chariot shuttle system, and Mercedes-Benz testing a kids’ ride service. With investment from General Motors, Lyft is actively testing self-driving ride-share services.

Auto Companies Need New Ways to Generate Capital…Now

Large-scale transformation costs money – real money – which creates a significant challenge to automotive manufacturers (and suppliers) still tasked with meeting financial expectations rooted in the legacy car business. The divisional CFO of a top 10 auto OEM recently said the division needs an incremental $250 to $400 million per year in cash to fund investments to respond to future technologies (note: this is just one division of the business).

How can companies fund this response to transformational disruption? Traditional methods of raising large amounts of capital (issuing debt, selling equity, selling a portion of the business, and layoffs/plant closures) are expensive and can have negative impact on things like shareholder value and market position.

For many auto manufacturers, the answer is supply chain finance through PrimeRevenue.

Auto manufacturers and suppliers often have hundreds of millions of dollars locked in their supply chains, which can be used to fund the transformative initiatives. Supply chain finance is one of the few financial health improvement tactics that works for both buyers and suppliers. Buyer organizations can extend payment terms, releasing money for their strategic needs, yielding potentially hundreds of millions in available cash when applied across hundreds of suppliers.

Suppliers use supply chain finance programs to negate term extensions by trading selected invoices to one of the 55+ funders on PrimeRevenue’s supply chain finance platform. In exchange for a nominal finance fee (significantly less than rates charged for more conventional methods of finance like early payment programs or asset-based lending), the supplier can receive near-immediate invoice payment.

PrimeRevenue’s supply chain finance solution gives both buyers and suppliers increased access to working capital, improved cash flow and visibility into payment processing. Our multi-funder approach means buyers have access to more competitive financing rates than they would through a bank-led program that relied on a single source of funding. Finally, suppliers participating in a customer’s supply chain finance program are able to use the credit rating of their customer to optimize working capital and improve cash flow in their own business.

When it comes to funding transformation, the stakes (and cash requirements) are high. Auto manufacturers and suppliers will need to look beyond traditional financing methods to meet the pace, cost and scale of this change. PrimeRevenue is already helping numerous automotive companies overcome this challenge and pave the road to a competitive and thriving future.

If you’d like to read more, check out this article.

By PrimeRevenue
Published January 11, 2018

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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.