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Lowest cost, online working capital for businesses

Feb 1, 2021 | Blog, Working Capital

Addendum Supply Chain Finance is mitigating the financial effects of the COVID-19 lockdown. Every day in lockdown, dozens of companies, each with thousands of suppliers, have taken advantage of this unique form of cheap working capital, through the click of a button.

Companies are no longer just dependent on shareholders, bank partners or other finance providers to inject fresh working capital into their businesses. A strong buyer-supplier relationship is enough.

Addendum Financial Technologies, the African leader in supply chain finance solutions, is remotely implementing 100% online, paperless solutions for large African companies and their suppliers.

Free up working capital immediately

Right now, African businesses are freeing up working capital, not only for themselves, but also for their suppliers without incurring any new debt, signing any new bank debt agreements, or completing a single physical document. Suppliers are getting electronic access to cheap working capital with three clicks of a button, without providing any surety or guarantees.

How does the solution work?

Supply chain finance is the ideal solution to unlock cheap working capital quickly during these challenging economic times.

1. 100% electronic and automated. 
Companies approve supplier invoices (normal course of business) and upload them electronically to Addendum’s award-winning technology platform.

2. Suppliers do not have to wait 30, 60 or 90 days for payment. 
Suppliers can log in to Addendum’s platform and with the click of a mouse, receive payment within 24 hours from one of Addendum’s many bank partners in Africa. The result is on-demand, online liquidity when needed. All major African banks are active funders on the platform.

3. The cost to receive early payment is linked to the buyer’s cost of funding, not the supplier’s. 
In South Africa the annualised cost of supply chain finance is typically sub 7%; and as low as 4.75% per year. No other costs.

4. There is no recourse from the bank to the supplier. 
The bank does not require any surety or guarantees from the supplier. Banks only look at the buyer for payment.

5. The nature of a supply chain finance solution essentially means large companies are making their unutilised, off-balance sheet funding lines available to their suppliers in the form of electronic, on-demand working capital.

According to Emuel Schoeman, MD at Addendum: “If all large companies in South Africa, including SOE’s, rolled out supply chain finance programs to support their suppliers financially, there could be an injection of more than R250b of cheap (sub-Prime) working capital, not new debt, into our economy.”

“This is truly an unmatched enterprise financial procurement solution.” 

Rui Morais, CFO, Dis-ChemLtd

“I recommend Addendum to all companies who seek to free up working capital locked up in their supply chain. Their end-to-end service has been key to create a successful supply chain finance programme for all involved”

Otto Rode, Treasurer, Distell Ltd

Global Award Winner

Addendum is the leading provider of supply chain finance in Africa and has won three global awards for African supply chain finance programs for their clients: In 2019 for Distell, 2018 for Dis-Chem, and 2016 for ArcelorMittal.

Register now

Online application http://addendum.registerapply.co.za

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About Addendum

Addendum provides supply chain finance and funding solutions to companies and funders in Africa. Please contact us for more information about how we can unlock value for your business.

Addendum provides financial technology solutions to companies and funders and aims to become the benchmark for best execution in our targeted markets. Our fintech solutions are capable of unlocking capital and funding for businesses of all sizes. We have designed real-time, online solutions that make markets transparent and products simple and seamless to execute.

Where others saw a barricaded, antiquated machine, we saw possibility. With transparency, convenience and choice as founding principles, Addendum puts you in charge. We believe that a small change to your business strategy – an addendum – can open a world of potential for your business.