BBVA has announced the formation of a new supply chain finance solution to compete and lead the business in Latin America, the U.S. and Europe.
The tool allows for the centralised management of payments, optimising corporate clients’ working capital while helping to improve the financial health of their suppliers. All of this with a unique digital experience thanks to the simple and intuitive navigation.
In its release, the firm outlined: “One of the biggest competitive advantages of offering centralised supply chain finance is that it allows BBVA to reach the entire base of suppliers with no limits on the number or amount of invoices – from the most strategic to those with smaller purchase volumes. In addition, the new platform has an agile and straight forward onboarding process, with specific support teams that allow providers to join the programs online, encouraging their participation.
“BBVA is strategically leveraging its extensive expertise in cash management services, offering the best options in terms of connectivity, types of formats and files. In order to offer the best service, the supply chain finance offering for corporate clients is complemented by specialised product teams around the world as well as experts in providing advice on working capital. The bank was recognised by the publication Global Finance as the best provider of supply chain finance in Western Europe in 2019 and the best provider of supply chain finance in Latin America in 2020.”
It comes during an environment where liquidity is once again the protagonist, supply chain finance or confirming have been confirmed as a countercyclical product.
It is an essential tool that allows companies to provide financial support that is more crucial than ever before to the suppliers that are part of their supply chain, while optimizing their working capital position.
According to data from PwC’s 2019-2020 report on working capital, it is estimated that liquidity trapped in companies balance sheets totals €1.2 billion, with the harm this does to both the supplier and their business as part of the company’s daily cash management.