Supply chain finance in times of crisis

A crisis such as COVID-19 has tremendous effects on the global economy. The impact has a direct effect on the globally spread and closely interlinked supply chains, causing either supply bottlenecks or even total outages.

Effective working capital finance programs help companies to support their supply chains. In normal times, working capital finance can help to optimize the liquidity of a company. With the improved cash flow, companies are able to undertake key investments as well as support future-oriented innovations. In a time of crisis, such investments fade into the background. Now the main focus lies in securing the necessary liquidity to maintain one’s business.

Working capital marketplace as an opportunity

Many companies have recognized the benefits of working capital finance. As a result, the idea of an independent marketplace for working capital financing is gaining traction compared to traditional solutions. With its multi-funder structure, it automatically offers access to a large number of funders who are available to finance the liabilities and receivables of participating companies. The diversification of funders not only improves the funding options, but also effectively minimizes the risk of a funding default. Any single-funding structure, relying on on one funding party – the traditional relationship bank setup of a customer – restricts a company in the financing of its liabilities and receivables. This is evident both in normal times and especially in times of crisis.

The figures speak for themselves

CRX Markets offers working capital finance solutions for companies through its independent marketplace with a multi-funder structure. Current demand proves the value of such offering. The CRX Markets marketplace is currently seeing a growing number of customers and an intensified use of its services. Accelerated by the current crisis, the demand for working capital finance is increasing. In the first quarter alone, 30% more suppliers were optimizing their cash flow through the marketplace. Within the same period, the total financed volume increased by 80% compared to the previous year. Thanks to the extensive funder network consisting of more than 30 funders, not a single financing default occurred, and all uploaded invoices were financed.

CRX Markets offers companies a marketplace that ensures the financing of working capital in normal times and in the crisis. Through access to a large number of funders, supply chains remain intact and stable.