12 | Acquisition International, Issue 2 2024 hen eFactor Network was founded back in 2009, it was done so with two key areas in mind. The first was to demonstrably aid large buying organisations in improving their capital, something that could be carried out by extending payment in terms in such a way as to not further burden the supply chain. Secondly, the business aimed to empower its clients to better their relationships with suppliers, something that could be achieved by providing customers with the option to secure an upfront payment at attractive financing rates, thus streamlining their operations and increasing the overall success of their business. Through hard work, dedication, and unrivalled expertise, their vision soon became a reality, and now, 15 years later, the team proudly help thousands of companies in the optimising of both their work capital and cash flow. The portfolio of clients that has been amassed by the team comprises of a series of multinational corporations, something that can be attributed to the innovative nature of the firm’s technology platform and the unbridled commitment by a team that are top of their league, embodying global excellence in the realms of finance, technology, and customer service. In the 15 years since its establishment, eFactor Network has improved payment terms and provided work capital access in excess of $42 billion, leading the charge in unlocking the cash flow of partner businesses and providing companies with a more convenient solution to the management and improvement of payment terms. Included as a part of this service is multi-bank flexibility, with more than 40 funders present to enable clients to secure finance spanning multiple currencies and countries. Examples of these funders include such world-renowned organisations as Santander, Bank of America, BBVA, and IFC. It is the primary focus of those involved with the firm to provide financial solutions that are some of the most comprehensive and reliable in the industry, immeasurably supporting not only their corporate clients, but also their clients’ business partners. At the heart of this approach has been the forging of long-term relationships by prioritising service of immense value, stellar support, the highest of standards across operations, and an overall air of seamlessness when it comes to the services it provides. It is the team that make all of this possible, allowing the company to grow and fortify its pioneering, scalable financing options. These financing solutions act to remedy a growing demand for liquidity by eFactor Network’s clients, and the team proudly service purchasing companies and suppliers/exporters alike, allowing the former to bridge the financing gap between payment of a supplier for goods and receiving payment from a customer, while the latter is assisted with obtaining advanced payments from customers. Integral to this success has been the effective connecting of buyers, suppliers, and funders through a global network platform, which makes supply chains more competitive thanks to this liquidity injection into the market. Although they may start out on the platform as suppliers, companies oft expand into buying as well, and vice versa, after beginning to realise the possibilities that arise from the successful utilisation of all that this platform has to offer. As an example of this, not only are their accounts made receivable, but also payable on their balance sheet. Furthermore, funders have been known to introduce eFactor Network to their own clients, which not only funds the platform and improves overall working capital metrics, but also further drives this network effect, strengthening ties and broadening horizons on an unprecedented scale. With multiple national and international funders to boot, in addition to a capital market financing solution, eFactor Network confidently provides the right financing through its supply chain solutions. In short, supply chain financing, sometimes referred to as reverse factoring, works by simultaneously allowing buyers to extend the terms of the payment and provides suppliers with the ability to get paid early. Rather than having to use their own cash and pay suppliers in advance, a buyer enters into an agreement with a platform provider, who then pays the supplier on the buyer’s behalf using invoices that are approved by them. Once a buyer approves the invoice, they then upload the relevant data to eFactor Network’s platform, where they can be viewed by the supplier, if they register for this platform themselves. From here, the supplier then has the option to sell their credits to a funder, selecting prepayment from one of the invoices that has been entered into the system. If an advance in payment is requested, this can be accepted, and the discounted funds paid. If the payment due date is reached and no advance has been requested, the buyer pays the invoice in full to the supplier. No hidden costs arise from this process, with the buyer often having to pay no fee for this solution and the supplier paying only a small discount if advance payment is requested, with these figures being based on both the length of the term and a buyer’s credit score. Moreover, no external software is required, and the platform can be accessed through a web browser, protected by a username and password. Security has been of paramount importance for the company, with its platform having several layers of security that each come complete with policies, controls, and monitoring. Corroborating these claims, more than $5 trillion in invoices have been processed by eFactor Network in the past 15 years, aided by the company’s 100% compliance with all audits and regulations, and cash that can be received in a turnaround as short as 24 hours, all through electronic transactions. Those from across the world can access this, and a host of international currencies have been made available to both corporate buyers and suppliers in more than 30 countries, with teams of specialised promoters available to give support that is tailored to a client’s needs and situation. Unlike other such solutions, eFactor Network’s platform allows for multiple funders to be selected, which is particularly useful should addition or With a portfolio of more than 20,000 happy customers relying on it to aid in the optimisation of their working capital and the reduction of risk to their supply chains, eFactor Network SAPI de CV boasts a state-of-the-art financing platform that improves overall efficiency by sharing information and offering transparency in the fields of both payment and billing flows. It is this award-winning platform which has resulted in the company receiving the title of Best Supply Chain FinTech Company 2023 – Mexico, enabling buyers and suppliers alike to fortify their supply chains, unlock free cash flow, and ultimately be more competitive in this bustling marketplace. W A Most Effective Way to Finance Working Capital
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