Orbian named Best Supply Chain Finance provider for the 12th time!
Rising interest rates and inflation at 40-year highs in many countries is a cause of concern for global supply chains, with the smallest suppliers being hit the hardest. Supply volatility and rising financing costs cast a spotlight on the need for consistent financial flows that align incentives and optimize working capital while facilitating procurement and sales.
According to a report published in October by Allied Market Research, the global supply chain finance (SCF) market generated $6 billion in 2021 and is projected to reach $13.4 billion by 2031, growing at a compounded annual rate of 8.8% from 2022 to 2031.
Growth in SCF was not even hindered by the 2021 collapse of the largest non-bank SCF business, Greensill Capital, whose practice of lending against prospective receivables was called by a UK parliamentary inquiry “a significantly riskier form of lending than traditional supply chain finance.”
Citi’s January 2023 Supply Chain Finance report focuses upon the role of SCF programs to “mitigate that financing challenge, particularly for small and midsize enterprises (SMEs).” As “SCF uses the higher rating of buying companies to enable suppliers to gain early access to attractively priced finance,” Citi found that “this increases suppliers’ resilience, shoring up the physical supply chain.”
In studying the health of the financial supply chain that powers physical supply chains, moreover, Citi finds that multinational corporations are looking to extend relationships with current suppliers and broaden their supplier base as a cushion against possible future disruptions.
Best Supply Chain Finance Provider (non-bank): Orbian
Thanks to partnerships with many international and local banks, Orbian provides multibank funding—enabling Orbian to offer its customers unlimited funding capacity at competitive pricing while reducing the risk of single-source liquidity. Buyers can access both SCF and virtual card solutions in a single integration, and Orbian’s flexible funding structure ensures a premium SCF solution to corporate buyers and their suppliers. Furthermore, by combining technology with funding capacity, Orbian streamlines invoice receipt and accounts payable processes and provides real-time access to reporting and reconciliation tools. Recent innovations include the introduction of specialized buyer financing of payment term extension utilizing Orbian’s own virtual card solution and a funding model of purchased receivables alternative to commercial paper.
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