Featured
Findynamic launches sustainable dynamic discounting
Fintech platforms have proved to be particularly active at this time of crisis for SMEs, with an ad hoc offer of services to overcome the difficulties resulting from the lockdown. The mission with which the FinDynamic platform was created is to automatically bring together customer companies (generally lead companies) and supplier companies. The company will launch the sustainable dynamic discounting program.
FinDynamic, a platform specialized in dynamic discounting, will launch at the beginning of next week a solution that is particularly innovative and which leverages the concept of economic sustainability and, therefore, consistency with international ESG criteria.
This is the first sustainable dynamic discounting program, in collaboration with LifeGate as media partner of the initiative. Companies that will use Sustainable Dynamic Discounting will be able to declare their commitment to support the supply chain, with an ethical claim validated, in accordance with ISO/TS 17033, by Bureau Veritas, world leader in inspection, compliance verification and certification services.
If you want to find out more details about the Findynamic platform and to read the most important financial news, download the Born2Invest mobile app.
The mission of the FinDynamic platform
In more detail, the mission with which the FinDynamic platform was created is to automatically bring together customer companies (generally lead companies) and supplier companies. In that way, if supplier companies are willing to pay an invoice in advance of the due date, they can enjoy a discount on the invoice amount proportional to the days in advance, agreed dynamically for each transaction. In essence, that discount on the invoice price represents the interest rate at which the leader is financing his supplier. That is beneficial to both parties in terms of more efficient treasury management.
Now, the Sustainable Dynamic discounting program requires that the lead company that pays its suppliers’ invoices in advance, obtains an ad hoc certification from Bureau Veritas. That is a sign that the company is financially supporting its suppliers, the more favorable the interest rate of the financing practiced to suppliers. It is clear, therefore, that, in order to obtain a higher validation by Bureau Veritas, the leader will be encouraged to apply lower rates to its suppliers. It is, therefore, an instrument capable of supporting the production chain, especially in the current context of the liquidity crisis linked to the global health emergency.
“We have long been thinking about a system that encourages sustainable development in the area of liquidity management. However, when the global health emergency exploded, it was our customers who asked us more and more. Large companies saw the problem ahead of time because any crisis has an impact on the supply chain,” said Enrico Viganò, CEO and founder of FinDynamic.
Companies will be able to use different types of claims within the platform
The Ethical Claim (ISO/TS 17033) is the new tool that ISO has developed to enable companies to communicate correctly on sustainability issues, regulating the formulation of any kind of statement regarding the social or environmental characteristics of a product or initiative. In particular, within the framework of the Sustainable Dynamic discounting program, the leading companies will be able to use two different types of claims: with the first one, the company will be able to publicly state that it supports SME suppliers on a financial level. With the second one, on the other hand, it will be able to declare that it rewards suppliers that comply with certain sustainability criteria. In both cases through the advance payment of invoices at more favorable conditions compared to the market average.
“The first clients to have welcomed this new service are those of the large-scale retail trade, because their suppliers found themselves in great difficulty due to the lockdown. In fact, they are often small producers who also have the Horeca channel as an outlet, but the channel has been completely blocked in recent months,” said Viganò, adding that “thanks to the partnership with Unicredit, among these customers came the Arena Group, leader in the large-scale retail trade in southern Italy.
Unicredit owns 10% of FinDynamic
Founded in 2016 by Enrico Viganò, with a past as a consultant in Bain&Co and in the direct investment division of General Electric, FinDynamic has been operational since September 2018. The company boasts clients of the caliber of Unicomm (Selex group, the largest Italian buying center for large-scale distribution), Unieuro, Sapio, Liu-Jo, Furla, and Venchi.
In 2019, the platform intermediated about $54.5 million (€50 million) of invoices of all sizes with six active customers, but to date the number of customers has increased to 30. Consequently, the 2020 prospectus promises to be an important multiple of the 2019 figure. “We think over 200 million for this year,” said Viganò, adding that “from the beginning of the business the total to the end of the year will be around 270 million.” The startup is 10% owned by Unicredit since June 2019.
__
(Featured image by lukasbieri via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in BeBeez, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
-
Business1 week ago
Airbnb Reacts to Regulatory Pressure on Tourist Apartments in Spain
-
Crypto8 hours ago
Bitcoin Weakens – Cardano, XRP, Tron and Others Lose a Lot of Ground
-
Crypto2 weeks ago
Bitcoin’s $90,000 Dip: A Pause, Not the End of the Bull Run According to Analysts
-
Biotech6 days ago
Sanofi Bets on China and Invests 1 Billion in an Insulin Factory