Abbey UK Corporate Banking and OB10 Partner on Supply Chain Finance Services
Abbey UK Corporate Banking and OB10 have announced a partnership designed to deliver cash flow benefits and processing cost savings to businesses in the UK, Europe and internationally. The new service, Supplier Payments, is aimed at large corporates, mid-corporates and public sector entities who wish to make their supply chains more competitive by improving working capital management and cutting the costs of accounts payable (A/P) and accounts receivable (A/R) processing. Abbey is leveraging Santander Group’s technology and experience in reverse factoring – a specialist form of supply chain finance – to enable suppliers to be paid quickly at a lower financial cost than generally available to small and medium enterprises through more traditional borrowing products. This in turn helps large buyers at the top of the supply chain to extract value through benefits such as free Supplier Payments, lower cost of goods or an extension in trade credit terms. In addition, Abbey and OB10 hope that their partnership will deliver benefits to corporates in cutting the processing costs and improving control and visibility over the sending, receiving and processing of invoices and purchase orders. Corporates adopting the solution will also help to reduce the environmental impact that its invoice processing has, as e-invoicing reduces an organisation’s reliance on paper.