Traxpay offers a supply chain finance platform using a Software as a Service (SaaS) model. Our customers are large corporates and other buying organisations who have large supply chains. Working with these corporates directly, or in partnership with banks, we offer the suppliers to these corporates the opportunity to have their invoices paid earlier than the standard contractual terms.
Thus, the supplier can overcome cash flow issues in a less costly way than other financing options. We take approved invoice data from the ERP system of the corporate and present this data to the suppliers via a dashboard on a webpage. Invoices eligible for early payment are shown along with the discount that will be applied to receive payment at an earlier date than scheduled. If the supplier accepts the discount offer, they approve the early payment and the Traxpay platform arranges for the invoice to be paid on the new, earlier date. Funding for the early can come from the corporate itself if it has excess liquidity (this is called dynamic discounting) or via a third party which could be the corporate’s bank(s) or third party investors (this is called reverse factoring).
The generic term for such activity is supply chain financing. Having designed and implemented these solutions, Traxpay realised that the mechanisms presented an opportunity for encouraging and rewarding sustainability in the supply chain. The corporate or other buying organisation can specify criteria that mark a supplier as worthy of a reward for their positive ESG characteristics. Traxpay can use indicators such as sustainability ratings from an agency or any other recognised accreditation. The categorisation of a supplier can be a binary yes/no, or one of several bands.
A supplier with such a marker is rewarded by being offered early payment at a more advantageous cost i.e. accepting a lesser discount. It also allows third party investors to choose to finance only those invoices submitted by suppliers with the necessary sustainability marker. Existing good sustainability characteristics are rewarded, and others in the supply chain are financially incentivised to strive for the necessary rating/accreditation so that they too may benefit. There is scope for suppliers of all sizes to benefit from Traxpay's sustainability programme, from multi-national corporations down to small businesses such as family fruit growers.
Our solution encourages suppliers of all sizes to strive to meet the ESG sustainability criteria set by their corporate customers or financing providers, in order to benefit from lower cost financing of their invoices (receiving early payment of their invoices in return for surrendering a smaller discount than non-eligible suppliers).
What sector is the business involved in
List of regions the company could be targeting
- South East Asia
- Southern Africa
- Eastern Europe
Number of employees
Accessing market opportunity, Access and introductions to the right people, Bespoke market research, Government support, Tailored assistance for entrepreneurs, Research & Development , Capital investment