CredAble, a leading fintech company specializing in supply chain finance and working capital solutions, has released their highly anticipated white paper, “Working Capital Playbook – Logistics: A Complete Guide to Supply Chain Financing.” The paper provides invaluable insights into the working capital challenges faced by logistics companies (such as extended payment cycles, cash crunch, access to collateral and cost volatility) and offers practical solutions and strategies to enhance financial efficiency, stability, and growth.
In the face of these financial challenges, a significant 71% of logistics professionals have acknowledged the hindrance posed by cash crunches, impeding operational optimization and expansion. Additionally, the escalating geopolitical tensions surrounding fuel supply and diminishing warehousing availability underscore the pressing need to address these financial complexities. Consequently, average working capital requirements are projected to increase from 20% of revenue in 2017 to a projected 25% of revenue by 2025.
In this context, the white paper aims to empower the logistics industry by addressing key working capital challenges, including capital investments, operational costs, and contingency funds, to help it reach its full potential. The paper thus intends to serve as a valuable resource by offering solutions, strategies, industrywide best practices, and SCF solutions such as early payment programs for suppliers, purchase order discounting and among others, to optimize working capital, streamline operations, and enhance financial stability.
The paper is statistically driven and focuses on:
- The corelation of growth with efficient working capital financing – with 70% of the companies that adopt supply chain financing being able to expand within 1 year.
- A numerical analysis on how liquidity crunch in the APAC markets might push corporates to reduce equity dependence.
- The savings that can be generated through credit underwriting and operational efficiency, as backed by empirical and statistical evidence.
It further highlights the experience CredAble has had in facilitating improved financial positions across clients through:
- A 37.37 day acceleration in the cash conversion cycle through CredAble’s Early Payment Program.
- Expected savings of upto 14% for treasury funded Early Payment Programs with 75%+ Vendor Participation
Commenting on the launch of the pioneering white paper Mr. Ram Kewalramani, Co-founder and Managing Director of CredAble, said ” At CredAble, our goal has always been to empower businesses by solving complex financial challenges. The logistics sector plays a pivotal role in global trade, and managing working capital efficiently is a key driver of success. Moreover, our white paper on the ‘Working Capital Playbook – Logistics’ demonstrates our commitment to providing logistics companies with the knowledge and resources they require for optimal performance. By unlocking the potential of supply chain financing, we aim to foster growth, sustainability, and efficiency within the industry.“
Key highlights of the white paper include:
- Understanding the distinctions of supply chain financing within the logistics industry.
- Statistical overview of working capital in the logistics industry
- Highlighting the Working Capital Sinkholes in the logistics business
- Exploring innovative fintech solutions to address supply chain finance challenges.
- Insights on how working capital solutions can help with operational efficiency, risk mitigation, technology adoption, improvement in cashflows and reduced dependency on equity.
- Real-world case studies illustrating successful working capital management strategies.
The white paper is a culmination of extensive research, industry expertise, and CredAble’s commitment to driving innovation in supply chain financing. It represents the company’s dedication to providing valuable resources to the logistics community, fostering growth, and strengthening the industry as a whole. Moreover, it is a comprehensive guide that represents a significant step forward in understanding the complexities of supply chain financing within the logistics sector.
With a proven track record in providing accessible, flexible, and efficient financial support, CredAble continues to lead the charge in fostering economic growth for logistics companies and contributing to the overall success of the logistics sector.
Download full report: https://www.credable.in/wp-content/uploads/2023/11/Logistics-Playbook-Copy_compressed-2.pdf
About CredAble:
Established in March 2017 by Nirav Choksi and Ram Kewalramani, CredAble is one of Asia’s largest working capital technology platforms enabling more than USD 6 billion annually in working capital which includes large, mid, emerging corporates, MSMEs, and financial institutions. CredAble’s platform hosts over 125 corporate customers, over 3,00,000 small business borrowers, and over 35 large financial institutions and banks. By leveraging technology built in-house, expertise in big data analytics, trade finance, and partnerships with capital providers, CredAble leads the working capital space while witnessing over 500% year-on-year growth.
Backed by well-known investors such as Oaks Asset Management, Plutus Wealth Management LLP and Axis Bank Limited, the company was granted NBFC (BBB Stable) license by RBI in 2019 and offers post invoice discounting and other working capital finance products. Apart from catering to the financial needs of the SME segment, the company offers financial services through its platform products to customers such as Large Corporates, Mid-Market and Emerging Corporates, Financial Institutions.
CredAble was recently awarded Product Innovation of the Year at the Global SME Finance Forum (World Bank Group) and the Team of the Year Award at the Asia Fintech Award 2023. CredAble has also won The Best Banking Technology for Supply Chain Financing at the BFSI Leadership Awards 2023, the Best Fintech and Bank Collaboration at the NBFC and Fintech Conclave 2023, the Best Cloud Initiative at the Krypton NBFC Leadership Awards and the Best Digital Transformation Enabler for Banks at the NBFC100 Tech Summit. The Company was also awarded as fintech startup of the year 2022 at The Asset Triple A Digital Awards 2022 followed by “The Best Banking Tech of the Year” at the Asia Fintech Award 2022 for building a tech stack that is robust & agile which has transformed the working capital landscape in the country.
For more information on CredAble and its innovative financial solutions, please visit: https://www.credable.in/
