Stronger, More Collaborative Partnerships

Ariba Supply Chain Finance is a great way to optimize your working capital while addressing your supplier's cash flow and financing cost concerns. By offering your lower cost of credit to suppliers, they can get working capital at a more affordable rate than they could attract on their own. It's all made easier in the Ariba Commerce Cloud, where you'll both have access to market-leading technology, service capabilities, and community resources.

• Optimizing working capital without added supply risk
  Transfer your lower cost of capital to suppliers who are often subject to prohibitively high financing costs. You can optimize your working capital without hurting your suppliers, and avoid having their higher financing rates passed along to you in the form of higher prices. Through the Ariba Network, a third-party funder accepts your guarantee to pay an invoice by its due date. In turn, they'll pay the supplier early, at a reasonably discounted rate based on your cost of capital. You help your suppliers access a relatively inexpensive liquidity source, and the funder earns a fair rate of return.
• How this works
  You transmit approved invoice information through the Ariba Network, the world's largest trading partner community of buyers, suppliers, and third-party lenders. Your supplier reviews the invoice online, and decides if they want to sell the receivable for early payment. If they do, a third-party funder advances them the invoice amount, less a low finance charge. At the invoice maturity date, you fund your bank account the full amount of the invoice, which is then transmitted to either your supplier or the funder, whoever is owed the money.
• Deploying a quick and easy solution
  Executing supply chain finance transactions through the Ariba Network, you and your partners work together on a single, SaaS platform that's integrated with your existing back-office systems. This ensures information integrity, and provides real-time visibility into orders, invoices, and payments. And as part of the Ariba Commerce Cloud, it's easy to share best practices and tips with an online community of peers and thought leaders, too. If you need technical or adoption assistance, all you need do is ask.

With Ariba Supply Chain Finance, you and your suppliers can both have the working capital you need, while you collaborate on building stronger partnerships. But that's not all you'll find in the Ariba Commerce Cloud. You and your suppliers have ready access to other collaborative finance management solutions that may better suit your current situation, like Discount Management and Receivables Financing. Click on the links to learn more.

Request more information about Ariba Supply Chain Finance or other working capital management solutions.

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