Sainsbury's Selects RBS as Funding Provider for Trading Finance Platform
The Royal Bank of Scotland (RBS) will become the funding provider for Sainsbury’s trading finance platform (TFP), effective 19 June 2009.
The TFP, which was developed by PrimeRevenue, is an Internet-based payment management system 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.
Darren Shapland, chief financial officer at Sainsbury’s, said: “Since the launch of our TFP 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.”