The Royal Bank of Scotland (RBS) announces today that it will become the funding provider for Sainsbury's Trading Finance Platform (TFP), effective June 19, 2009.
The TFP, which was launched in 2007, is a UK retail industry first. This internet-based payment management system, developed by PrimeRevenue, is designed to make it quicker and easier for suppliers to access account information and to benefit from early payments.
The system provides suppliers with an online view of their trading account with Sainsbury's - including invoices, debit notes, remittance advices and payment dates - and complete visibility of their expected cash flow.
Registered suppliers have the option to be paid early once their invoices are approved for payment. Suppliers can opt to receive early cash settlement by selling their invoices to RBS at a competitive financing rate. This crucial flexibility in payment terms allows Sainsbury's to support the cash flow needs of its core suppliers, while minimising the risk of supply chain disruption.
Suppliers already registered on the system have been contacted to advise them that RBS is the funding provider from June 19, 2009. Each supplier has been invited to visit an online portal to ensure the orderly and efficient transition of their details to RBS.
Darren Shapland, Chief Financial Officer, Sainsbury's, said, "Since the launch of our Trading Finance Platform in 2007, we have witnessed a significant increase in the number of suppliers utilising the platform to better manage their cash flow. We are delighted that RBS, a key relationship bank, has agreed to provide funding for the programme going forward. We believe RBS' participation offers considerable scope to grow the programme and further improve liquidity throughout our supply chain."
Brian Stevenson, Chief Executive of Global Transaction Services, RBS, said: "We are proud to be bringing our expertise to this innovative solution for suppliers. As the UK's largest corporate bank*, RBS is committed to supporting the needs of UK businesses, and trade finance is an integral part of this. Moreover, at a er, at a time when many companies are recognising the value of supporting the finance needs of their suppliers, Sainsbury's is demonstrating clear leadership with this programme. We look forward to strengthening our relationship with Sainsbury's and supporting their supply chain objectives through this programme in the future."
Joe Juliano, Chief Executive Officer of technology and services provider PrimeRevenue, Inc. added: "The success of Sainsbury's Trading Finance Platform to date will grow given the banking leadership that RBS brings to the offering. Now, more than ever, supply chain finance solutions like these are compelling for corporates and their suppliers who seek to address mutual objectives in challenging economic times."