Corporations Benefit from Paygevity’s SCF Program

Feb. 12018

Supply Chain Finance (SCF), also known as reverse factoring, is a tool used to optimize working capital management and liquidity. This tool is used globally, by corporations and governments abroad looking to invigorate their economies. Corporations can benefit from Paygevity's SCF Program in various ways from paying down debt to funding acquisitions.

What is Supply Chain Finance?

A supply chain is the existing connection between a corporation and its suppliers. Injecting a financier elevates this term to SCF.

Despite being in use for decades, McKinsey estimates the amount of working capital trapped within the global supply chain to be in the trillions of dollars.

Corporations using Paygevity’s SCF can extend their days payable 120 days and beyond while their suppliers get paid immediately, at a discount, by Paygevity’s third party funding partners.

Paygevity’s SCF Benefits to Corporations

Paygevity’s SCF program presents several benefits for corporations interested in extending days payable 120 days and beyond, and at the same time, rewarding suppliers with immediate payment on their invoices.

It fosters a mutually equitable relationship that stimulates growth and innovation.

Corporations “win” with Paygevity by optimizing their working capital management.

Upon implementing Paygevity’s customizable SCF program, corporations can expect to see increases in free cash flow over the course of many years.

Paygevity’s working capital platform frees up cash in order for corporations to be better able to compete, invest and grow. Typically, this excess free cash flow can be used to:

  • Invest in R & D
  • Pay down debt
  • Re-invest in capital expenditure initiatives
  • Fund acquisitions
  • Mitigate vendor supply chain risk
  • Initiate stock buybacks
  • Raise dividends

Paygevity SCF allows corporations to extend payments on vendor invoices (i.e. extending DPO) in order to free up cash flow. In turn, corporations can invest that cash in value creating activities to maximize its shareholder value.

How does it work?

Paygevity uses advanced technology to elevate the performance of PromptPay™ - a highly customizable cloud-enabled enterprise SCF marketplace that connects buyers and vendors with leading Wall Street third-party funding institutions that compete to finance corporate buyer SCF programs.

Paygevity’s PromptPay automates B2B payments and associated work flow needs while also providing key cash flow metrics to support Treasury and CFO strategy and governance functions.

PromptPay's scalable, zero-cost, and secure enterprise supply chain payment architecture offers corporations, their vendors, and private equity-owned portfolio companies with increased flexibility in working capital management.

Paygevity’s Mission

Upon partnering with Paygevity, corporations are awarded with a customized working capital program, in order to achieve and ultimately surpass profitability goals.

Paygevity’s mission is to free up working capital cash in order for corporations to use that cash in ways that maximize their shareholder value.

Authored by: Dr. Gerrit Kuijt, PhD, M.D.

Dr. Kuijt serves as Paygevity’s Chief Business Development Officer and leads the corporation’s strategic growth initiatives globally. Concurrently, he is completing an Applied Economics PhD (his second PhD) at Antwerp Management School. Prior to joining Paygevity, Dr. Kuijt served as Vice President of Business Development and Chief Medical Officer at Avant-garde Health. A former military surgeon and Lieutenant Colonel in the Royal Dutch Army Reserves, Dr. Kuijt attended Valparaiso University where he studied physics—ultimately earning his medical degree from Erasmus University and a PhD in Clinical Medicine from Maastricht University. Dr. Kuijt is a graduate of Harvard Business School’s Program for Leadership Development—an accelerated alternative to an executive MBA designed for specialists and star contributors.

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