« These years of joint and rewarding collaboration have resulted in the continuous improvement of the service offer to our suppliers. Together, we have optimised the presentation and the overall management of the device for our suppliers’ benefit ».

The Airbus Treasury Management Team

« Our partnership approach allows us to work in very close relationship with our customers. We are happy and proud of the trust that Airbus has shown to us since 2008. In addition to our own projects, in terms of functional and technical evolutions, the Corporate LinX team is always attentive to changing its offering as needed and expressed by the users of our Corporate LinX eXchange Portal.”

Fabien Jacquot from Corporate LinX

« Corporate LinX’s offering is definitely the most comprehensive and flexible on the market. Their technical solution is easily adaptable to set up and manage Reverse Factoring for large international organisations. Their multi-bank approach, as well as their partnership policy with their clients, makes the collaboration with Corporate LinX both efficient and innovative. « 

Marc SAUTY
Alcatel-Lucent
Operation Group/Procurement & Design to cost
Procurement Processes & Systems Director

« In 2009, in the pursuit of leveraging and optimising the Group’s cash flow and working capital requirements, the Alcatel-Lucent Treasury wanted to analyse the opportunity of using Supply Chain Finance/reverse factoring. To validate the interest in such a programme, we decided to carry out a business case led by experts from the field, who could justify the setting up of such a programme for a group of our size and who had adequate contacts with financial corporations and banks operating in this field internationally. We selected Corporate LinX, as their proposal and the consultants’ experience seemed to meet our needs. Their proposal for a transactional dematerialisation portal seemed equally powerful, easy to install and operate. We provided CLX with access to our Purchasing databases and systems, allowing them to conduct an analysis of the possible impact of such a project for our Group. They were able to highlight the strengths and weaknesses of the programme, in terms of our business profile, as well as establish several proposals/assumptions, including segmenting suppliers and countries. Their multi-bank approach was clearly a plus that we appreciated. The analysis was marked by a quality, efficient and timely collaboration. Despite the interest of the analysis, the priorities of the moment led us to postpone choosing the programme, but we definitely enjoyed the collaboration with Corporate LinX. »

Nicolas Gauthier, Alcatel-Lucent Treasurer, in charge of operational cash flow optimisation

“As an expert provider to evaluate and predict how to extend our advance payment offer for our suppliers in a multi-bank framework, the choice of Corporate LinX, has certainly met our expectations. The quality of the deliverables has made it possible to better understand the organisation of the following phases. Their expertise in this type of programme, in a French and European context, combined with a dedicated technical solution (CLeX portal) for the management of this type of initiative has given our Group a positive outlook. Collaboration on a partnership basis has taken place in a pleasant context of mutual trust.”

Collections Manager AUCHAN Grande Distribution Group

« Very proud of the Purchasing, IT and Finance teams at Bel who contributed to this innovative solution: – a source of transparency of future cash receipts and easily accessible cash for our suppliers – a source of productivity, improvement of the purchase to pay process and cash optimisation for Bel. Huge work from the Corporate LinX teams. « 

Patrice Bourcier, Financial Controller Investments

So your group has opened a so-called ‘reverse factoring project’, but for what purpose exactly?

The goal of this project which was launched over a year ago has actually evolved over time. Rather than setting up standard reverse factoring, the basic idea was to adopt a CSR approach with regard to our suppliers (in a difficult context of lowered milk prices and financing difficulties for milk producers). We therefore considered offering to pay them earlier. The plan was not to extend our payment deadlines to the detriment of suppliers, especially as we wanted to use our available cash at the same time. However, it has since been used with the acquisition of Materne Montblanc (850M€). The project is still effective and we are ready to slightly reduce the Group’s WCR, aware that paying our suppliers in advance represents optimal investment, based on our knowledge of the counterparty risk and remunerated by a discount, as well as observing that it is increasingly difficult to place cash with positive rates.

Where is the project?

Given the fragile context of milk producers today, and the complexity of the project with suppliers, (very short deadlines) we decided to postpone the implementation of the project for the moment. We will refer it to our other suppliers, who are paid at 60 days or more. A multi-country solution would require us to take into account the variable regulatory constraints depending on the country. The scope will be limited to France to begin with. We are testing the willingness of some of our suppliers to use the solution and looking at the results, we will see if the volumes justify an assembly and the intervention of an external financier. We have noted already that the project is very structuring: it involves Purchasing, Accounting and IT and requires a real organisational change. The topics it addresses are those that are usually abandoned, such as the optimisation of accounts payable, the rationalisation of payment campaigns etc … with productivity gains at the key. We expect to begin with at least one hundred suppliers and an outstanding of 10M€ in invoices payable in 60 days, in which case the assembly would be paid back in one year while putting our cash in the service of the economy. In the long term, outstandings can be much higher.

Will you use banks?

We are sceptical about reverse factoring offers/banks because they are mainly interested in large suppliers with KYC problems which tend to make them selective. In addition, their solutions are not neutral for suppliers and often appear as factoring in the statistics of the Banque de France. Finally, their intervention covers potential hidden costs. We would rather seek FinTechs, like Corporate LinX, who have more advanced expertise and products, and on the programme financing front can associate via medium-term and long-term investors through Common Funds of Securitisation (FCT). 

Benoît Rousseau, director of financing and treasury of Fromageries Bel

« During the spin-off with Carrefour, Dia wanted to set up its own Reverse Factoring programme. However, even if the benefits of this approach were clear to both us and to our suppliers, we did not know how to build such a programme which was previously managed by Carrefour’s Finifac entity until then. After a quick tour of the suppliers in this segment, we called Corporate LinX (CLX) who seemed the only organisation able to take all the steps to help us build our own Reverse programme. Once the objectives were defined, their turnkey offer allowed us to rely on CLX’s expertise. From consulting, to the implementation of the project, their technical experience through the call for tenders to financing, marketing, as well as the deployment unit to suppliers – they did everything! CLX also allowed our CAC to understand that this programme would maintain our supplier debt and would not run the risk of requalification. The timing was tight – and the programme was set up in a few weeks despite the fact that at Dia, our teams were not available because they were mainly mobilised to manage the split from Carrefour. Quick and efficient partner. »

Ludivine Lemercier – Treasurer Dia France

« In June 2011, we asked Corporate LinX to implement a so-called « Reverse Factoring » programme to provide online services and high added value to our suppliers, as well as a proposal for early settlement of their debts with Dia France. The programme was set up in just a few months in order to be operational before the end of 2011. Dia France has had little experience in the field of Reverse Factoring, relying heavily on the experience of Corporate LinX to build a differentiating provider programme and financial research to participate in our own programme. The creation of multi-language media for supplier communication and the approach with our suppliers were also part of the service scope. I would also add that the Dia team remembers fondly the strong collaboration which took place in a partnership spirit with Corporate LinX. « 

Cédric Fontugne Head of Treasury – DIA France

“Europcar’s ambition is to be one of the world’s leading players in the mobility sector by offering innovative and tailored solutions to meet the needs of its customers in terms of personal and professional travel. In 2017, more than 7.5 billion km was covered by the Group’s customers by car rental or car-sharing services.

By promoting the use of vehicle ownership, functionality is at the heart of Europcar’s business model, thus limiting the use of vehicle manufacturing resources and fuel consumption thanks to a recent fleet (average vehicle ownership period of about 9 months) and shipping the latest consumer and emission technologies. However, because of its international presence, many of its activities and the sector in which it operates, the Group is very aware of the environmental issues it faces, as well as its social and societal footprint. The Group is convinced that Corporate Social Responsibility (CSR) is a key factor for success and sustainability in carrying out its activities and achieving its growth objectives.

With this outlook, Europcar has created « Commit Together! », a pioneering strategy in its market articulated around four major commitments that are all priorities for sustainable success for the Group. This strategy, validated by the Group’s governance bodies, is the result of consultation and analysis of the CSR expectations of its main stakeholders (employees, suppliers, customers, investors and franchisees) as well as an analysis of the related impacts, risks and opportunities.”

« At the start of the project, the Group Treasury mandated Corporate LinX (CLX) with the feasibility phases and then the implementation of our supplier programme, entitled Faurecia-Direct. Continuously in contact with CLX, nothing was left to chance, knowing that a project of this type includes Legal, IT and Marketing. We also needed to consider that supplier documentation describing programme benefits and CAC support documents, as well as in-house training info were all equally important to give us every possibility to achieve our supplier objectives of the device. Faurecia-Direct has given us a better understanding of some of the internal functions of our organisation, and in particular the relationship we have with our supplier partners, offering them new and adapted services. The choice of alternative financing permitted; not to use our own banking lines and let our suppliers benefit from financing with a real commitment on competitive tariff conditions as well as durations. Our collaboration has been truly positive and we have entrusted CLX to manage our now common Faurecia Direct programme for several years. A very reliable partner. »

Baudouin Courau – Group Treasurer

Established in France more than 15 years ago, Carrefour’s supplier financing programme is certainly the first so-called Reverse Factoring programme, being the first kind of this programme (worldwide) in terms of the amount of receivables financed, the rate of use and number of active providers.

As proof, Finifac has become the 8th provider of short-term credit in France, limiting its scope of activities to only the claims of suppliers of the Carrefour Group. The progress and success of this innovative programme continues each year, unchanged, thanks to the quality of service provided to suppliers, including on-line visibility, forecasting of receipts and lettering of transactions.

« Corporate LinX acts as a service provider and partner to Finifac, the Carrefour Group’s finance company, specialising in the financing of supplier trade receivables in the world’s second-largest distribution group. »

FINIFAC – CARREFOUR Group

Oscaro.com was founded in January 2001 to market premium and original automotive accessories and parts onthe Internet. Oscaro can be sourced directly from leading OEMs or major parts wholesalers and processes several thousands of orders per month. Oscaro also provides advice from 180 call centre agents. The Oscaro Supply Chain was awarded in 2014 for its efficiency.

“For the feasibility of setting up our own approach to offer value-added services to our suppliers and as part of the collaboration with Corporate LinX, their knowledge of the banking and factor network proved to be an enormous asset for RATP. For the RATP, the financing of a Reverse Factoring programme and the balance sheets impact have specific characteristics. We have therefore asked our partner to assist us with the formalisation and documentation of the financing needs for our suppliers, not only in financial terms but also on the possible legal impacts. Corporate LinX’s excellent knowledge of the network of financiers capable of offering financial conditions under the conditions laid down by the RATP; as well as the workings of such montages have so far proved to be an added value for the specificities of our organisation. In addition, Corporate LinX has been able to work transversally between purchasing, accounts payable, the IT function and cash flow, which has made the process more coherent and efficient.”

Mr Dominique QUEGUINER – Treasury and Finance Department of Management Control and Finance – RATP

« The collaboration with Corporate LinX involves the feasibility of a Reverse Factoring programme. It demonstrates their expertise and know-how concerning all the necessary elements for setting up such a device. The basic Reverse plan is expanded to a value-added service for our suppliers. In addition, the development of such a programme allows our organisation to benefit from real business benefits. The approach is therefore to adhere the departments concerned by the supplier post to the project. We hope that such a collaboration with CLX will continue until the programme implementation, in order to achieve the goal of offering our suppliers and the RATP the best added value possible through this collaborative Reverse Factoring. »

Claude Bordier – RATP Purchasing Development

“Our project was launched in the context of a negotiation of our purchases and the restructuring of the debt for which the trust of the suppliers and our investors was paramount. In addition, the WCR level was to be maintained while regaining EBITDA. This project was also intended to help suppliers in difficulty, particularly those who are financially fragile and who yet are strategic for our business. The more restricted access to short-term credit, as well as for some the fluctuation of currencies, reinforced this need to provide them with access to our programme to offer them funding through financial partners.

An action plan for each of our brands (according to their specificities) has been implemented. The work has enabled the supplier base to be reviewed and to verify the correct application of the contractual conditions and applicable terms of payment.

It made sense to work in partnership with Corporate LinX, not only on the price aspects of their service, but also the deadlines and the quality of the work.”

Jérôme Baniol – CFO – Vivarte Group