PrimeRevenue Injects Critical Liquidity into Global Economy Amid Supply Chain Disruption, Sees Dramatic Spike in Demand for Early Payment
Company reports a record $10 billion in early payments and 93% of approved invoices traded in March 2020
ATLANTA, April 8, 2020 /PRNewswire/ -- PrimeRevenue, Inc., the leading supply chain finance provider, accelerated a record $10 billion in early payments to suppliers in March as companies worldwide seek access to cash to respond to the economic dislocations resulting from the global pandemic.
The impacts of COVID-19 have created a global need for liquidity and these played out very quickly on PrimeRevenue's working capital platforms. Suppliers' demand for cash surged in March, when the volume of invoices suppliers elected to sell, converting their Accounts Receivables into much needed cash, outpaced February's early payment amounts by 34%. In addition, not only did the monetary value of invoices traded for early payment increase but so did suppliers' eagerness to accelerate more of what was available during the month than ever before.
March showed suppliers trading 93% of available invoices for early payment, well above the typical rates ranging between 70% and 80%.
The demand for cash stems from companies' rush to secure critical liquidity during this period of extreme uncertainty.
"It is clear that businesses' cash flow needs are changing dramatically during this global crisis of rapid dislocation and ongoing uncertainty," said PrimeRevenue CEO PJ Bain. "After everyone's health, our top priority is supporting clients through this crisis. The knowledge that we are helping companies to navigate this challenging time is a bright spot when good news is much needed. By working together, we will not only survive this period, but the global economy will emerge stronger than ever."
Partnering with its clients, PrimeRevenue is preparing to onboard thousands of additional suppliers to the platform in the coming weeks. To support the increase in liquidity requirements, PrimeRevenue is working with its funding network to source additional liquidity for suppliers who will need access to capital as the global economy comes back online.
PrimeRevenue aims to provide companies of varying sizes and credit ratings with cash flow solutions via supply chain finance, otherwise known as reverse factoring or approved payables. Unlike dynamic discounting or early pay discounts, supply chain finance provides a net working capital benefit to both sides of the transaction – injecting critical liquidity into the supply chain two-fold. The company also provides a receivables finance solution, which is seeing an increase in demand during this time.
About PrimeRevenue
PrimeRevenue's supply chain finance solutions help organizations in 80+ countries optimize their working capital to efficiently fund strategic initiatives and strengthen relationships throughout the supply chain. PrimeRevenue's diverse multi-funder platform processes more than $250 billion USD in payment transactions per year. The company is headquartered in Atlanta, with offices in London, Prague, Hong Kong and Melbourne. Additional information about PrimeRevenue can be found at www.primerevenue.com | Twitter: @primerevenue | LinkedIn: www.linkedin.com/company/primerevenue.
Media Contact:
Ariane Wolff
Warner Communications
[email protected]
978.729.3542 (U.S.)
SOURCE PrimeRevenue, Inc.
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