FCIreverse

What is FCIreverse?

It is FCI’s new Supply Chain Finance buyer centric solution, which is based on Reverse Factoring. It is intended for buyer companies that have several suppliers who could benefit from their buyer’s lower cost of funding. For the buyers themselves, it can improve supplier management, create the opportunity to negotiate better payment terms, ultimately allowing for better cash flow forecasting and a stronger, more resilient supply chain. The product is offered in collaboration with Demica who owns and operates the technology platform powering FCIreverse.

What is Supply Chain Finance?

Following the Standard Definitions for Techniques of Supply Chain Finance developped by BAFT, EBA, FCI, ICC and ITFA (2016), Supply Chain Finance is defined as the use of financing and risk mitigation practices and techniques to optimise the management of the working capital and liquidity invested in supply chain processes and transactions. SCF is typically applied to open account trade and is triggered by supply chain events. Visibility of underlying trade flows by the finance provider(s) is a necessary component of such financing arrangements which can be enabled by a technology platform. 

 

The entire definition is available here.