The Premium Technology Payables Management and Financing (PMF) module provides banks or financial institutions with a solution to offer buyers or importers a service to better manage and process accounts payables. The PMF solution manages payables related to cash flow and working capital that minimizes the costs of funds and maximize available cash.

PMF is a tool for banks to be an intermediary or service provider to replace or augment Accounts Payables processing of clients. The bank negotiates with the sellers or exporters for a payment discount to pre-pay before the scheduled terms and conditions (T&C) payment date. The pre-pay will generate an interim loan to be paid-off on the original scheduled T&C payment date. On the original scheduled T&C payment date, the bank would debit the buyer account for the full amount and pay-off the associated interim loan. Depending on the PMF services agreement with the buyer, the bank may share the payment discounts with the buyer. If there are no seller/exporter discounts, an automatic invoice payment would be effected based on the buyer’s payment schedule and instructions. Accordingly, the bank debits the buyer’s account on the payable due date.

However, the buyer may want to finance the payables due beyond the original scheduled T&C payment date by changing the tenor date or through an inventory collateralized loan - extended payables financing. This would provide the buyer access to working capital that would have

Delivering the Values

Premium Technology offers the marketplace leading edge FinShare Financial Supply Chain Solutions (FSC) utilizing the latest information technology such as J2EE/Java/XML.

The FSC product suite is a robust set of modules and components that allows financial supply chain constituents to participate in the working capital value proposition (sellers, buyers, banks, financial intermediaries, corporate, etc.).

The value proposition is to maximize availability and optimize utilization of working capital with minimal costs and managed associated risks.

Highlights

• Enables straight-through-processing (STP) to reduce costs, errors, omissions, and fragmented manual processes
• For financial institutions, the solution functionality allows for new product offerings such as payables management and payables financing
• Collaboration and negotiations with clients through a web-based portal for uploading payables files (invoices and invoice validation rules), client information, vendor information, payment terms and conditions, and correspondence
• Supports all types of fees, tiered charges, discounts, and multi-currency payables transactions
• Has a rules-based engine to solve common exceptions and escalate exceptions during the payables transaction processing lifecycle
• Detailed information access and reporting, such as, multi-level reporting and monitoring, on-line dashboards and analytics, daily activity and settlement reports, etc.
• Highly scalable and flexible since it is not limited by transaction volume or payables type. PMF can be a standalone, multi-user, multi-entity, or multi-site

• Streamlining buyer accounts payables operational process
• Reducing costs, errors, omissions, and manual processes
• Scalability and flexibility in transaction volume
• Performing payables financing scenario analysis for asset and loan creation through its invoice selection and batching functionality
• Providing client access for input, query, and correspondence services
• Providing multi-level system security, transaction processing validation, authorization, and review capability
• Providing audit trails and management reporting

• Establishes invoice validation rules
• Establishes invoice payment schedules
• Sets-up payment instructions
• Sets-up payables management fees and interest mark-up
• Tracks buyer/seller transaction financial data relationships

• Limit checks based on a seller limit both at a total bank relationship level and at a buyer limit level
• Limit checks at the supplier and buyer (sub-limit) relationship level
• Concentration limit checks and control for supplier, buyer, customer group, industry, currency,cross border, etc.
• Credit insurance tracking, control, and management for both client purchased (master policy) and bank (invoice value/tenor) provided

• Uploading and/or entering payables/invoices online
• Through a web based access,clients can access and track invoice/payables status (paid, pending,schedules, reports)
• Processing amendments to payables (invoices) such as credit notes
• Multiple levels of validation, review, authorization, and control
• Unlimited fee schedules: fixed, tiered, indexed, multiple
• Automatic invoice payments based on buyer’s payment schedule
• Automated settlement and release functions
• Banks can batch invoices/payables by seller to negotiate discounts for pre-payment before the scheduled payment date
• Banks can pre-pay sellers and receive the negotiated discounts
• The associated batch of invoices/payables is an asset for creating an interim loan (loan for the pre-payment amount plus fees and/or mark-up prior to the original scheduled payment date) At the original scheduled payment date, the bank debits the buyer’s account for the full payment amount and closes out the loan
• Generates financial reporting and G/L entries for bank and buyer systems