50 Years Facilitating Open Account - Trade Finance

FCI Council approves the roll-out of FCIreverse, selects Demica as its global supply chain finance platform partner

Tuesday 27 June 2017

Amsterdam, 27 June 2017 – FCI, the global representative body for factoring and financing of open account domestic and international trade receivables, announced today that its new supply chain initiative FCIreverse will be based on the Demica platform. FCIreverse will enable FCI’s network of 400 banks and independent factoring firms to easily partner and fund their clients’ suppliers anywhere in the world. Demica, a rapidly growing London based fintech and specialist provider of working capital solutions to major corporates and banks, will open its multi-funder platform to FCI members on a pay-as-you go basis to remove any barriers to adoption of FCIreverse. Demica already enables the funding of over $60bn of trade receivables a year for over 3,000 large corporates and SMEs in Europe, North America and Asia.


With over $100bn of funds in use and growing at a rate of over 20%, reverse factoring, also referred to as confirming or approved payables finance [1] is one the fastest growing segments of trade finance. Used extensively in retail, manufacturing and service sectors, the product allows buyers to enable their suppliers to access low cost working capital and mitigate the trend in longer payment terms.


Commenting on the selection, Peter Mulroy, Secretary General of FCI, said: “We have been planning the launch of FCIreverse for over two years. The key step was to identify a proven platform provider with a strong background and experience in buyer-led payables programs, that was able to meet our members’ technology, security & compliance policies needs but also ensured a sound user experience for the anchor buyers and their domestic and international suppliers. Demica has already been adopted by a number of global banks within the FCI network, and with its recent release of new interfaces and supplier onboarding tools it stood out as our partner of choice”.


Supply chains increasingly operate on a global basis with suppliers in many countries, but domestic banking regulations, local currency payments and the need to onboard suppliers in many languages makes it challenging for any financial institution other than the largest banks to provide a global service to their clients.


FCIreverse will enable member banks and factoring companies to seamlessly finance their clients’ suppliers anywhere in the world by partnering in the background with other FCI members that have the necessary licences & operational capabilities to onboard suppliers in countries where they themselves are unable to operate. This will help to open up the reverse factoring market


[1] Under the newly created terms under the “Standard Definitions for Techniques of Supply Chain Finance” created together with the ICC, see the definition here