Repaid aims to provide access to funding to SMEs and very small enterprises without disrupting the ownership structure of these companies.Repaid operates a platform that brings together funders, buyers and suppliers of goods and services. Funding is provided by optimising the working capital requirements of both buyers and suppliers of goods and services. Repaid optimisation tool utilizes supply chain finance techniques to enable suppliers to get paid immediately while buyers can delay their payments from original payment terms.
With easy onboarding suppliers of good and services are allowed to sell their receivables to a funder at a pre agreed discount in exchange of immediate payment. Payment is automatic and fast utilising API services from local banks in Cyprus. Bu participating in a supply chain finance program supplier reduce payment risk and improve their liquidity since payment is done without recourse.
Buyers of good and services are the initiators of these kind of transactions following selection of some suppliers to participate which are recurring providers of goods and services and have special importance ion the supply chain. To make early discount feasible buyers approved the receivable for payment and provides the funder irrevocable promise to pay.
Funders make early payments of receivables in exchange of promissory notes issued by the buyer of goods and services. Settlement of payments are made according to new extended terms agreed between the funder and the buyer that owes the money.
Supply chain finance offers a rare “win-win” scenario for all. If implemented properly, the entire supply chain - buyers, suppliers, and funders will stand to benefit from supply chain finance.
Buyers benefit from extended payment terms (aligned to local regulations)and hence, reducing working capital requirements. Suppliers in turn, benefit from having access to accelerated cash flow at preferential discount rates which allows them to receive payment for approved invoices earlier and at a lower cost. Funders are presented with a unique opportunity to invest in new themes that reflects real economy trends in a well-diversified manner.
Every day, companies rely on working capital to fund their physical supply chain, support growth, pay for strategic initiatives and provide a financial
cushion. Buyers and Suppliers can be faced with conflicting objectives;Buyers want to maximize payment terms while Suppliers want to receive payment as early as possible. Traditional financing methods can be frustrating at times. Repaid offers a solution to this problem!