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Supply Chain Solutions helping to tide through the Crisis Times

By Tony Duggan - August 14, 2020

“Cash is King”- an age old saying stands to be totally apt in these times. Liquidity along with- “optimal utilisation of resources”, “efficient and robust supply chain models” coupled with a cost-effective solution holds the key for businesses to re-start their operations in these tough times.

Debt v/s having liquidity by enabling early payments for ones’ supplies- which one to choose?

The latter -- Early payments are faster, easier to manage and most importantly brings in immediate cash into your supply chain.

The Problem- Faced by the Suppliers

The CCFF scheme, launched in March this year, aiming to provide financing to companies to accelerate payments to their suppliers, could not bring the benefits as envisaged, primarily because-

  • Most companies were unable to obtain financing under those schemes - large companies could not qualify due to stringent rating criteria and smaller ones were unable to qualify due to their size

  • It also required large companies to sign the “Prompt Payment Code” – this acted as a great limitation, with most companies under this scheme facing challenge to comply to the same.

Other schemes like CBILS, CLBILS and BBLS continue to support firms through the current economic uncertainty, there has been a looming concern on the ability for the borrowers to repay once their grace period of 12 months gets over.

With challenges to avail the most optimal financing solution being there, liquidity crunch has significantly impacted the supply chain models of these companies, their revenues and hence impacting the economy as a whole.

The Solution- Supporting Suppliers to tide the crisis

Supply Chain Solutions offering early payments to the suppliers can help improve not just the production cycle but also boost up the overall working capital for the system, and ultimately the corporates’ revenues.

Crossflow offers this integrated solution, backed by seamless technology; This solution is not the temporary stop-gap arrangement in these times, but is a long-term programme, a long-term association, which the company invests in- to tide over the good and the difficult times.

After all they say, bad times do not last long, good practices enable you stay afloat in all times.

To know more, simply reach out to us on the below and we are there to assist you-

https://www.crossflowpayments.co.uk/contact

 


TD_CEO_Tony Duggan is co-founder and CEO of Crossflow. He served as Supply Chain Director at Wickes and B&Q prior to serving as Product Development Director at SWIFT, the global banking network. He also managed an outsourced fintech development project for HSBC in Hong Kong.

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