The Tungsten Network, based on the OB10 e-invoicing, solution, services suppliers world-wide. It has long been a dream of the Tungsten Network management to provide supply chain finance for all their suppliers, see. They started the development of their supply chain finance programme in late 2012 when they began offering financing with a third party finance provider. For various reasons this didn’t work out, but it showed how important and popular this sort of supply chain finance would be with suppliers, particularly, if it could be independent of a particular bank or finance provider. Since then OB10/Tungsten Network have been working on delivering this new service. This supply chain finance project is now reaching fruition with a service that Tungsten Network are convinced will ‘transform global supply chain financing’.

Tungsten Network Finance framework

Tungsten Network Finance have worked hard to ensure that “business partners can trade with confidence” world-wide by ensuring that:

• the Tungsten Network is authorised and fully regulated by the PRA and FCA
• has a large funding capacity via own bank and funding partners
• uses a well-known bank(Bank of New York Mellon) as administrator and custodian bank 
• they employ all the KYC and Anti Money Laundering checks throughout the lifetime of their customer relationship
• wherever they operate in all the heavily regulated environments there is no compliance or regulatory risk for buyer. 

This is the framework for the new supply chain financing solution they will offer around the world.

Tungsten Network Finance Offer

Suppliers will be offered optional early payment on approved-for-payment (by the buyer) invoices to support their cash-flow needs. This will be non-recourse confidential invoice discounting offering 100% advance rate minus the discount fee which Tungsten Network claim will be “transparent and competitive,” see figure below.

Tungsten Network Finance: invoices available for early payment

Source & Copyright©2014 - Tungsten Corporation plc

This screenshot was taken from a demo site that uses dummy data at the end of February, although it is being redesigned, it does show:

• the payment timeline for all invoices
• how the service enables a supplier sees ALL their invoices from all their buyers on the Tungsten Network and can take early payment on one or all of the invoices
• the discount fee varies depending on how early the invoice is paid
• the total amount (in red) selected for early payment.

Once invoices have been selected the supplier clicks on the green button, they’re prompted for their password and the early payment request is processed. (Tungsten Network call it ‘green button financing’.) The early payment will arrive in the supplier’s bank account in 1-3 days typically, depending on the local payment clearing system. 

Another important benefit for suppliers is that this will be a consistent reliable source of funding, not dependant on whether the buyer is cash rich or whether bank(s) change their attitude to lending to companies.

Target market

Tungsten Network are their new Financing service for small-to-medium enterprises in the “gap’ because the buyer’s own supply chain financing programmes typically target their 40-50 suppliers. While Tungsten believe they will capture the “rest of the supplier tail”, see figure. 

Targeting SMEs

Source & Copyright©2014 - Trade Financing Matters

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CTMfile take: There is a revolution taking place in the supply chain finance market and products/services. New features and functionality are appearing almost daily, as suppliers and banks try to exploit the market opportunities available in the modern technology platforms. For corporate treasurers this represents an important opportunity to improve the financial stability of their supply chains.