Corporations using Ariba can electronically tap into the network to source cost-effective receivables discounting and trade finance opportunities from a range of banks.

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Ariba Supply Chain Finance

Optimize your working capital and strengthen your supply chain at the same time.

Support Key Suppliers with Access to Affordable Cash via the Ariba Network

If any of your critical suppliers runs low on cash without access to affordable financing, Ariba offers a way you can help — a way to maintain stability in your supply chain while keeping your cash flow and working capital objectives on track.

This innovative solution employs the Ariba Network, the world’s largest web-based trading community of buyers, sellers, and financial institutions. The process leverages your credit worthiness to provide your suppliers with access to affordable, on-demand cash from one or more third-party funders. As a result,

  • You and your suppliers reduce working capital while mitigating supply-chain risk
  •  Funders receive a fair rate of return on a low-risk investment
  • Everybody develops stronger, more collaborative business commerce relationships

 

How this Works

  1. When you deploy Ariba Supply Chain Finance, you designate which of your suppliers may participate.
  2. You and your suppliers work together via a single, web-based SaaS platform, integrated with your back-office systems and providing real-time visibility of invoices.
  3. When in need of cash, an enabled supplier views invoices that you’ve approved for later payment.
  4. The supplier indicates the desire to sell one or more of these receivables for immediate cash.
  5. Accepting your guarantee to pay the invoice(s) by the due date, a third-party funder advances them the invoice amount less a reasonable discount.
  6. Discount rates are determined by your investment-grade credit risk.
  7. On the due date, you fund your bank account the full invoice amount.
  8. The funds are sent to either the supplier or funder, whoever is owed the money.