– M24 Brand Studio: In the current context, what is the benefit for a company of using Supply Chain Finance?
Ghizlane Zizi : First of all, it is important to remember what Supply Chain Finance (SCF) is. It is a set of solutions for companies of all sizes, aimed at optimizing their working capital and improving their liquidity.
These solutions cover all stages of the value chain from procurement to production, then the shipping phase, and even the post-shipping phase, through payment term extension products.
Among the most common products of an SCF program are factoring and confirming. Factoring, or factoring, is a short-term financing technique which allows the company to benefit from early payment of its receivables before the due date. Confirming, or reverse factoring, allows companies to provide their suppliers with financing for their invoices before payment is due. The financing and payment of these supplier invoices when due is then taken care of by the bank.
Concretely, the implementation of an SCF program involves three actors: the buyer, also called the principal, its supplier as well as the financial institution which ensures the management of payments as well as any financing needs. which arise from it.
These programs offer advantages for both the client and its supplier.
For the contractor, these solutions make it possible in particular to:
- facilitate the management of invoice payments for all of its suppliers by centralizing their management;
- control payment deadlines;
- improve relations with its suppliers by offering them the possibility of obtaining financing on advantageous terms.
For the contractor, the SCF also constitutes an inclusive approach towards its SME ecosystem.
For the supplier, it relieves cash flow needs through significant optimization of working capital. An SCF program gives the supplier access to more accessible (digital platform) and more competitive means of financing (at lower cost, without guarantee and without impact on current banking lines).
– A word on the typical profile of Moroccan companies that use SCF solutions…
– SCF solutions meet the needs of all businesses, regardless of their size. However, the profile of the beneficiary companies varies depending on the products.
For example, for confirming, the need generally comes from a large company (contractor), with a large ecosystem, which wishes to provide its suppliers with advantageous financing conditions.
For factoring, the need rather comes from the supplier, who can be a company of any size wishing to benefit from early payment of its receivables which are, in general, issued by large companies.
From a sectoral point of view, in Morocco, several sectors have the critical mass necessary to successfully implement SCF programs which are very popular for the development of the industrial fabric. For example, we can cite the pharmaceutical, agri-food, construction, automotive, mass distribution sectors, and many others.
– How is the Attijariwafa bank group’s offer in this area structured?
– It should be remembered that factoring products such as confirming or factoring are marketed by Attijari Factoring Maroc, a major player in the financing and receivables management sector, for more than twenty-five years.
The new SCF offer deployed by the bank capitalizes both on this expertise, but also on a global system integrating a multi-product digital platform as well as the contribution of the entire Attijariwafa bank network, offering an optimal customer experience.
Indeed, through the Attijari Supply Chain Finance digital platform, the order giver has the possibility of automating the payment of their invoices. As for the supplier, he can then access his receivables validated by the principal through this platform and request advance financing of his invoices under advantageous conditions.
It is through this same platform that we offer other value chain financing products, notably Factoring, the extension of payment terms and even distributor financing.
Our medium-term ambition is to continue the development of SCF solutions adapted to each stage of the value chain. These solutions will also be integrated into this same platform, thus providing unique access to all of the payment and financing solutions developed, both for clients and suppliers.
Do you have a real estate project in mind? Yakeey & Médias24 help you make it happen!
© Media24. Any reproduction prohibited, in any form whatsoever, without written authorization from the Société des Nouveaux Médias. This content is protected by law and in particular law 88-13 relating to the press and publishing as well as laws 66.19 and 2-00 relating to copyright and related rights.
Related News :