PrimeRevenue, a provider of Supply Chain Finance (SCF) solutions reported strong demand as companies struggle to source liquidity in today's credit-constrained environment. Approximately 300 new suppliers have been added to the SCF Platform -- totaling a spend volume of $5.8 billion -- in the six months ending September 2008.
The company's SCF Platform is an online network that links global companies ("Buyers"), their suppliers ("Suppliers"), and third-party Financial Institutions. Through Supply Chain Finance, suppliers of all sizes can access financing based on the credit risk profile of the large Buyer. This serves to both increase the availability and drive down the cost of financing for Suppliers, reducing cost and financial risk throughout the Buyer's supply chain.
"Our substantial growth over the past few months is a direct consequence of increased strain in the credit markets. Companies are telling us that they see Supply Chain Finance as a complement to existing working capital facilities, or as an outright replacement to those that have been removed. All have welcomed the value our 'on-demand' working capital facility gives them to meet on-going business requirements in this unprecedented credit crunch," said Joe Juliano, PrimeRevenue CEO.
Since the advent of the credit crunch in August 2007, supplier-initiated receivables sold via the PrimeRevenue solution grew approximately 40%. Financial institution partners include Bank of America, BMO Capital Markets, Macquarie Bank, Morgan Stanley, and National City Bank, among others.