Kitchen Products Firm Zwilling Teams With Traxpay for SCF
German kitchen products maker Zwilling has formed a partnership with supply chain finance platform Traxpay, the two companies announced in a Friday (July 8) press release.
The partnership will see Zwilling use Traxpay’s Dynamic Discounting, a financial instrument that allows Zwilling to support “its supplier ecosystem with additional liquidity in dynamic times, and in return receives an attractive and risk-free return by investing liquidity in its supply chain,” according to the release.
Dynamic Discounting lets Zwilling’s supplier decide what invoices to accelerate and when to do so, giving them immediate access to needed liquidity while lowering financing costs.
“For us, this is an important step toward strengthening our supply chain, increasing transparency toward our suppliers, and further digitizing our processes,” said Zwilling Director of Purchasing Dr. Michael Otremba in the release. “By flexibly offering additional liquidity for our supplier ecosystem, we are also pursuing purchasing-side goals in times of strained supply chains and dynamic growth, which also partly puts our local as well as international suppliers under pressure with regard to their production and liquidity planning.”
Research by PYMNTS found that companies face two chief problems when making payments to suppliers: issues with invoice reconciliation and a dearth of supplier portals.
Read more: Easy Invoicing, Supplier Portals Top B2B Payments Wish List
Financial institutions (FIs) serving cross-border payments customers and large enterprises tend to provide more digital solutions than those serving middle-market companies and small businesses.
Only around a third of FIs said they effectively limit B2B payments and cash management frictions for their clients, while more than 75% of FIs serving cross-border payments customers and large enterprises said they have succeeded in this task.
For example, FIs serving cross-border payments customers and large enterprises are most likely to provide automatic matching of payments and invoices — at 48% and 49%, respectively — while just 45% of those serving middle-market firms and 33% of those serving small businesses do so.
Sign up here for daily updates on all of PYMNTS’ B2B coverage.