LFP139 – A Fintech That Is Globally The Largest Non-Bank In Its Sector – Global Trade & Supply Chain Finance w/ Peter Cook PrimeRevenue

Not many Fintechs dominate their sector let alone in one of the biggest markets in the world. PrimeRevenue was formed in 2003 and is the largest non-bank supplied of Supply Chain Finance in the world (working capital finance for global trade). They facilitate more than $200bn of payments per annum for 20,000 clients. In this show we dive into what it is that such a Fintech does. What can other Fintechs learn from one of the global best in Fintech?

Peter Cook who is head of all non-US sales talks us through how global trade actually works and the staggering sums of money that can be released from working capital using the appropriate techniques and how this can be win:win for vendor and buyer.

Topics discussed include:

  • Peter’s single back in the day with his OzPop band Halogen – “The Inertia Conspiracy” – Spotify, Amazon, Apple
  • The background to this
  • Peter’s subsequent career journey
  • the essence of supply chain finance is simple – improving cashflow for CFOs and Treasurers
  • the vital nature of cash to every business – you go bust without it even if you are “making a profit”
  • capital intensive industries and global buyers/sellers
  • disruption patterns at present
  • supply chain finance is an umbrella term for many types of approach but it is really designed to allow buyers to optimise their cashflow whilst giving suppliers early access to their capital
  • Case Study with a global food producer
  • the greater visibility from having a modern Fintech platform compared to oldskool paper files in banks
  • does the power generally lie with suppliers or vendors? Case Studies.
  • the complex nature of the relationship and complex negotiations over many parameters apart from price
  • how supply chain finance changes and facilitates these conversations
  • the highly-consultative nature of the marketplace
  • compare and contrast with younger Fintechs being more commodity-transaction focused
  • The ways you can raise $1bn and where Supply Chain Finance fits in
  • Case study of a client that raised $1bn in cash by working with PrimeRevenue
  • the composition of Peter’s team
  • lessons for younger Fintechs, especially re complex B2B markets
  • the government is looking at supply chain finance
  • trends in the market – from MegaCos to smaller businesses and smaller deals – lower credit-rated companies accessing it
  • how the network effect works
  • how Private Equity firms are using supply chain finance to add value in a challenging market
  • how the process works over stages of the PE investment cycle
  • proposal to contract can take less than two months; to start generating cash can take around 6mts as it is a complex business and complex purchasing
  • long-term programs – example of one of PrimeRevenue’s programs which is 16yrs old
  • Smaller scale Case study – a home-kitchen based business that got a deal to supply 350 supermarkets nationwide – how supply chain finance helped expand the infrastructure
  • PrimeRevenue’s deals run from sub-£1m to £bns
  • a great marketplace for funders to create assets with attractive qualities

And much much more 🙂

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