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Earlytrade clients are the case studies of choice in Ombudsman’s final report into supply chain finance
Australian fintech Earlytrade and its clients were featured in more positive case studies than any other SCF provider in the final review into the SCF industry by the Small Business Ombudsman.
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Sydney, April 2020
Australian fintech Earlytrade and its clients were featured in more positive case studies than any other SCF provider in the final review into the SCF industry by the Small Business Ombudsman.
The ombudsman stated that a truly collaborative SCF program does not discriminate against particular suppliers. Its use must be at the control of the supplier and they should have the freedom not to use it. One of Earlytrade’s clients Lion is quoted saying SCF is beneficial “if it is offered in addition to – rather than as an alternative to – fair payment terms.”
“We agree with the Ombudsman, 30-day payment terms should be legally binding and we believe this will help all business during a COVID-19 downturn.” Earlytrade CEO and co-founder Guy Saxelby said. “There isn't any excuse for this. With the right tools, any major company can pay their suppliers within 30 days.” Since launching Earlytrade in 2017, Lion has seen more than a 125% increase in suppliers paid on terms of 30 days and shorter (from 42.06% to 94.63%).
This payment term law should be limited to small business, as it's where the funds are needed most. Legally, there are many definitions for this that may need to be clarified ahead of a law being put in place. As a solution, we offer large companies a verification service called Earlytrade Verify to automatically identify smaller businesses in their supply chain, as it can often be incredibly difficult and costly for companies with thousands of suppliers to determine who fits what criteria.
About Earlytrade
Earlytrade is an Australian fintech company that provides a unique ethical alternative to ‘reverse factoring’ or supply chain finance.
Founded in 2016 by technology entrepreneur, Guy Saxelby and ex-ASX product manager, Piers Symons, Earlytrade owns and operates Australia’s largest early payment marketplace with over 36,000 businesses using the platform today to request early payment from their customers.
A key difference between the Earlytrade Marketplace model and other reverse factoring arrangements is that it is entirely supplier-driven. If suppliers require funding before their contractually agreed payment date, they can access an alternative source of liquidity via the marketplace at rates significantly less than bank financing, which in turn creates real value for suppliers.
Earlytrade’s Marketplace matches a committed supply of working capital from customers and the demand for early payment from all their suppliers. Unlike some platforms, Earlytrade does not mine big data or use AI to collect detailed information on the contents of supplier invoices. This is important as it allows Earlytrade’s marketplace to be neutral, with supply and demand driving rates.
Along with its core marketplace platform, Earlytrade has four other products growing in adoption including Earlytrade View, Earlytrade Verify, Earlytrade Grower and Earlytrade Fund.