Propell, a South African financial services provider, has partnered with PrimeRevenue, Inc., the solution provider for optimising cash flow in financial supply chains.
PJ Bain, PrimeRevenue CEO, said, “Considering the rising demand for trade finance solutions, there is a strong opportunity for Propell to step in as the supply chain finance provider in Africa. They bring a wealth of local experience with finance expertise and we are looking forward to providing companies in the region with best-in-class working capital optimisation tools.”
Willem le Roux, Propell’s CEO, added, “Propell is proud to bring PrimeRevenue’s global reach and market leading technology to Africa. This partnership finally brings the proven working capital benefits of multi-bank supply chain finance within reach of Africa’s corporate sector.”
PrimeRevenue runs large supplier finance programmes throughout the world. These programmes span the globe, involving over 14,000 companies and 45 funding partners located in more than 40 countries. Propell has chosen PrimeRevenue’s technology to implement and manage supply chain finance programmes for African companies, enabling clients to improve their cash flow, lower procurement costs, earn better yields on surplus cash and assist suppliers.
“What we offer is a working capital solution for companies and their suppliers. Buyers can strengthen their supplier relationships by giving suppliers access to cheaper finance and in the process optimise their working capital. They can also lower procurement costs and improve profitability by being able to pay suppliers early to take advantage of supplier discounts. Other benefits can include higher returns on cash assets and improved efficiency in the accounts payable division,” said Emuel Schoeman, Director of Supply Chain Finance at Propell.
“Suppliers can benefit, too, by not having to depend on expensive factoring solutions or bank loans to finance their cash flow,” continued Schoeman. “Traditional factoring and invoice discounting is time consuming and often creates a huge administration burden. Suppliers like the fact that they have immediate access to cash at competitive rates, a simple online process and the benefit of this finance not being recorded as a debt on their balance sheet, thereby not affecting existing credit lines with banks.”
“In conjunction with PrimeRevenue, Propell provides a comprehensive supply chain finance service, with funding from multiple local and international banks, supply chain spend analysis, benchmarking, benefit quantification, programme design, implementation and programme management, training of procurement, on-boarding and training suppliers to ongoing monitoring and support,” Schoeman concluded.