Electrical supplies distributor Rexel is implementing PrimeRevenue’s supply chain finance system, OpenSCiTM.
Through the OpenSCi platform, Rexel’s suppliers can choose to receive early payment on their approved invoices at attractive funding rates, backed by Rexel’s solid credit rating.
French group Rexel has a network of some 2,300 branches in 38 countries. Sales were €13 billion in 2013.
PrimeRevenue reckons that with early payments made, in the majority of cases, on the next working day and carrying no transaction fee, working capital requirements can be reduced significantly and cash flow is less constrained. This allows suppliers to reduce their days’ sales outstanding and maintain a healthier balance sheet, freeing up borrowing capacity with lenders.
“The supplier finance solution managed by PrimeRevenue gives us an additional tool to help us meet our working capital objectives and strengthen our supplier relationships,” said Alex Whewell, head of UK finance transaction services at Rexel.
“The PrimeRevenue OpenSCi platform provides greater visibility of the invoicing process and allows participating suppliers to significantly improve their cash flow management, reduce debt and strengthen their financial position, which in turn lowers risk within our own supply chain.”