GT Nexus Redefines Supply Chain Finance With Big Data
Innovative Funding Program Leverages Cloud Platform Data to Qualify Lending
Hollywood, Fla. June 9, 2015 – GT Nexus and trade finance solutions provider SeaburyTFX announced today a new funding program that leverages big data on the GT Nexus platform to deliver suppliers access to low cost capital. The program opens the flow of capital into the supply chain to reduce costs and risk by basing funding decisions on the trading partners’ performance history, instead of the buyer’s or supplier’s credit. The announcement was made at Bridges 2015, the premier cloud supply chain industry event being held June 8-11 in Hollywood, Florida.
GT Nexus provides a legal framework and compliance engine for b-to-b commerce that helps ensure clean and compliant transactions on more than $100 billion in global business annually.
“The high performance rate of the overall GT Nexus network of transactions makes it an attractive portfolio for securitization in the financial markets,” said Robert Lin, President and CEO of SeaburyTFX. “Unlike traditional programs working with individual banks or providers on a transactional basis, funding of this program is secured by a pool of transactions on the platform. The transparency, standardization, comprehensiveness and reliability of GT Nexus’ big data are critical to ensuring liquidity, and thus enabling healthier and more efficient supply chain finance.”
Buyers and suppliers in this program are able to remove from the supply chain capital-related barriers that can cause delays or impact customer service.
“This type of program reduces both cost and risk in our supply chain while improving overall performance,” said Harry Gaffney, CFO of Charles Komar & Sons. “Our suppliers can access funding to run their business when they need it most, at key times within the transaction lifecycle – as early as order. Access to liquidity at crucial points assures the flow of supply goes un-disrupted and improves our customer performance.”
Funding is provided off-balance sheet. Suppliers can obtain cash at the same rate and terms for any qualified buyer on the GT Nexus platform.
“We can now get the funding we need earlier in the transaction lifecycle and we no longer have to wait for an approved invoice,” said Adam Sutton, President of Highland Belts & Fine Leathergoods. “Cash flow visibility and payment certainty allow us to better map out our growth. We can move forward with certainty, knowing that we will have the funds needed to buy materials and fill new orders.”
Traditional supply chain finance programs look at a company’s profitability, cost of goods, sales figures and growth projections for the region. Collecting and interpreting data can take weeks given lack of standards in both documentation and pricing methodologies.
“Big data is revolutionizing business across all industries and segments, and today we are changing the face of supply chain finance,” said Sean Feeney, CEO of GT Nexus. “It’s no longer a complex jigsaw puzzle of documents, data and transactional party analysis. We’re deploying big data to open up the pipeline of capital into the global supply chain by triggering faster, smarter financing decisions based on deep analytics on the GT Nexus platform. The result is stronger and more resilient supply chains.”
About Seabury TFX
Seabury TFX (“STFX”) is a Hong Kong- and U.S.-based company providing trade finance solutions to supply chains around the world. STFX’s unique platform harnesses the power of data and technology to originate trade finance transactions. STFX is a subsidiary of Seabury Capital LLC, a global firm founded in 1995 with two principal groups, Seabury Advisory Group LLC (“SAG”) and Seabury Capital LLC (“SeaCap”). Seabury Enterprise Solutions delivers IT solutions designed to empower their users to effectively understand and manage to their operational and financial objectives.
SAG is a global advisory practice with professionals on five continents and more than 15 countries covering Aviation, Aerospace & Defense, Financial Services, Government Services, Logistics, Maritime, Transportation and related industries. SAG has partnered with more than 300 clients located in more than 50 countries on more than 1,100 engagements to solve complex challenges requiring consulting, investment banking, restructuring and/or information technology solutions.
Seabury Capital LLC (“SeaCap”), a wholly-owned subsidiary of Seabury Capital, owns and operates a number of specialty finance companies providing innovative cross-border financing for equipment and trade receivables as well as insurance-backed auto service and financial obligations. SeaCap recently launched a merchant banking business to take minority equity positions in, and to provide debt financing to, middle market companies. SeaCap also owns software companies providing enterprise solutions to airlines, aerospace companies and institutional market-makers in foreign exchange and other financial markets. www.seaburygroup.com
About GT Nexus
GT Nexus operates the world’s largest cloud-based business network and execution platform for global trade and supply chain management. Over 25,000 businesses across industry verticals, including adidas Group, Caterpillar, Citi, Columbia Sportswear, DHL, Electrolux, Levi Strauss & Co., Nestlé, Pfizer, and Sears share GT Nexus as their standard, multi-enterprise collaboration platform. This enables all network participants to operate against a core, real-time and always on set of information across multiple supply chain functions, allowing them to optimize the flow of goods, funds and trade information, from the point of order through final payment. For more information please visit us at www.gtnexus.com.