Crossflow Payments tduggan@crossflowpayments.co.uk +44 (0) 7748 986 - - PowerPoint PPT Presentation

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Oct 09, 2022 13 likes •194 views

Tony Duggan CEO Crossflow Payments tduggan@crossflowpayments.co.uk +44 (0) 7748 986 675 Crossflow introduction Tony Duggan - CEO 24.2 million transactions Simon Mansfield - IT 904 mil worth of invoices Director processed through our

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Tony Duggan CEO Crossflow Payments tduggan@crossflowpayments.co.uk +44 (0) 7748 986 675

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Crossflow introduction

Tony Duggan - CEO Simon Mansfield - IT Director Tony Pinn- Operations Director Jack Perschke – Commercial Director Carl Maughan - CTO Supply Chain Finance Solution Fully integrated with Free Transaction Processing 24.2 million transactions £904 mil worth of invoices processed through our platform £9 Bn projected in 2014 as a result of our free model Funding capacity of £1.9Bn

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Market conditions

BoE announced today that ‘credit supply to businesses remains relatively subdued, especially to SMEs’

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Supplier payment terms are increasing up to 90 days

Market conditions

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Market conditions- summary

Longer payment terms
Basel III-Bank lending to businesses falling
Small businesses struggling for cash
Government intervention - ‘Funding for Lending’

scheme

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SCF- Traditional Models

Buyer Supplier Bank Factoring

25% Drop in SME lending since 2009- £170Bn

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SCF- New Models

Buyer Supplier Corporate Peer2Peer

Hedge Funds Pension Funds Banks

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Challenges

P2P industry risk, trust in the market
Anti-competitive behaviour/ Bank dominance
Legislation and Regulatory
Pricing
Liquidity- capacity to provide long term finance

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Benefits for buyers

Facilitate own payment strategy
Strengthen relationships
Supplier sustainability- minimise risk

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Benefits for suppliers

Access to cash as they need it
Competitive rates
No onerous sign up process
Immediate payment of invoices
Underpins their broader working capital
Engage with new customers who have long

payment terms

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Overview

SCF Schemes Advantage Disadvantage Banks Limited funding availability Expensive lending rates Security requirements for borrowers Factoring Expensive rates Requirement to commit entire ledger Mid to long term commitment Corporate Peer 2 Peer Funds available Competitive lending rates Fully automated

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But is it a win-win for everyone?

Clarity – user friendly – no bells and whistles
Transparency – simple interface – clear information
Simplicity – easy sign up process
SaaS – accessibility
Obligations – security requirements
Costs – set up costs
Credit Ratings – affordable finance?

How is it possible to ensure that SCF programmes are not only for large buyers but also for suppliers and SMEs?

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Issues to consider when selecting a SCF solution

Compliance
Security of funds
Long term availability of funds
Provider business strategy
Ease of use
Hidden costs
Supplier on boarding

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IT Implementation

Create benefits for IT
Define integration point
Enable display of transactions available to be financed:

into a supplier’s system (i.e. marketplace environment) into an invoice matching system (i.e. buyer side) into a different system (i.e. BPO compatible)

Standards
Interoperability
Funds reimbursement
BPO opportunity
Integration speed

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Innovation – trends to watch

Corporate Peer-to-peer
The peer- to- peer lending space has also caught

the eye of institutional players

By 2015, peer-to-peer lending in the UK will be

worth £1 billion a year in loans

*Research from Research and Markets’ ‘Peer-to-Peer Lending UK Facts and Figures 2013’

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Invitation Network/Q&A Session 10 ipods to be won

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