NEWS
NEWS
Demica achieves new milestone in quest to transform supply chain finance
Demica , a leading FinTech in supply chain finance , whose platform is used by some of the world ’ s leading trade banks and corporates to power global working capital programmes , has announced that assets under administration ( AuA ) have surpassed US $ 40 billion , representing over $ 240 billion of invoice flow over the course of the year .
Compound annual growth of assets on the Demica platform over the last eight years ( since 2016 ) is over 40 % – reflecting the global demand for Demica ’ s supply chain finance solutions , the success of the banks using Demica ’ s platform to grow their assets and the increase in corporates turning directly to Demica for a flexible source of liquidity .
The platform manages over 52 million open invoices at any point in time , enabling the delivery of large complex programmes across the full spectrum of supply chain finance products , including trade receivables finance and securitisation , payables finance and dynamic discounting .
Late payments are the biggest cause of cash flow stagnation for UK SMEs , according to Allstar insights
Late invoices are the primary culprit for causing cash flow problems for businesses according to two-fifths
( 41 %) of UK small- and medium-sized enterprises ( SMEs ) while making sure the bills are paid was an issue for a third ( 32 %) and having access to emergency cash ( 21 %) was also top of the list . That ’ s according to Allstar , one of the UK ’ s leading business , EV and fuel expense payment companies , which launched its latest insights into the issues plaguing the nations small businesses .
Late payments are costing small businesses £ 22,000 a year on average , with the government announcing the New Fair Payment Code . This will include new measures and a consultation to combat the issue , which leads to 50,000 business closures a year .
The research , which surveyed 500 SME business owners and decision-makers , completed with Censuswide , found that over half ( 54 %) cite cash flow an issue and up to 70 % say that the burden of cashflow and admin has significantly hampered business growth .
Cash flows are being impacted predominantly by inefficiencies , and just over half say they spend up to six hours managing costs and their cashflow . Burdened with a daily onslaught of challenges including cash flow management , SME owners are on the lookout for little wins that make their lives easier by removing points of friction and simplification . More than a quarter ( 28 %) said that faster payment of invoices is the key to helping their business save time , and 27 % say it would solve admin and cash flow problems .
10 www . intelligentfin . tech