Drive Supplier Participation & Maximize Working Capital Benefits
Buyer-backed Supply chain finance is a key contributor to a healthy, agile supply chain and nurtures both the buyer and its suppliers. A custom BSCF Program will influence supplier behavior, drive participation and maximize working capital benefits while supporting suppliers with cash-flow benefits.
INCENTIVIZE YOUR SUPPLIERS
Supplier adoption across the entire spend profile is the only true indicator and measurement of success. KIPROD is confident that with the right messaging, targeting, and incentive programs in place, you will be able to accomplish a 90% or better supplier adoption rate.
INCLUDE ALL SUPPLIERS
Your BSCF Program can include suppliers with as little as Kshs 1000k spend per annum. By supporting small businesses, you can improve public opinion and customer loyalty, not to mention increase supplier diversity (97% of Fortune 500 companies have supplier diversity programs).
EAST AFRICAN COMMUNITY COVERAGE
KIPROD can typically arrange the purchase of receivables from suppliers in any country in the EAC and where a true sale protocol is available. KIPROD can currently purchase receivables from suppliers in these countries:
KENYA, UGANDA, TANZANIA AND RWANDA
Supplier Onboarding: Simple Supplier Enrollment
KIPROD offers an intuitive, web-based supplier enrollment and onboarding process with customer service and documentation specialists available to help suppliers with any questions that come up.
- Your company invites the supplier to participate in the BSCF Program.
- Supplier registers online, provides documentation and executes agreement.
- KIPROD obtains standard, simple documentation from the supplier for KYC (due diligence) and authentication.
- The Supplier Agreement is the only agreement the supplier is asked to sign; it is a straightforward, short form contract.
- Once all underwriting is completed the supplier is admitted to the BSCF Program. KIPROD will provide the supplier login credentials for the BSCF Platform along with a user manual and executed Supplier Agreement.
- Your company updates the supplier Master Data in your ERP system accordingly.
- The supplier is ready to participate in the SCF Program!
Customized collateral
KIPROD provides customized collateral and dedicated enrollment website for suppliers. Suppliers visit www.kiprodsupplier.com and enter a specific enrollment code for your BSCF Program. They will then follow the online prompts to complete our simple three-step process:
- Complete the online enrollment form with company information, bank account details (with participating funding institution) and key contact information.
- Upload copies of company identification and payment account documents for verification and completion of KYC.
- E-sign the KIPROD System Use and Supplier Payment and Discount Agreement.
Protective contract structure
KIPROD establishes separate contracts with your company, with each supplier and with the funding partners. There are no contracts between your company and suppliers regarding the KIPROD BSCF Program. This is an important aspect in maintaining payables treatment.
Buyer Contract: One contract between KIPROD and your company provides access to, and use of, the KIPROD System as well as governs your payment obligations to the BSCF Program. Buyer affiliates or subsidiaries may be added as separate entities with a simple Accession Agreement.
Supplier Agreement: One contract between KIPROD and each supplier provides access to the KIPROD System and allows the supplier the opportunity to offer receivables for purchase at the agreed upon discount rate in exchange for early, non-recourse cash. The purchase of receivables is an all-cash true sale transaction, not a loan.
Funding Agreements: Under the Buyer Contract your company makes an irrevocable obligation to pay the funding institution the face value of approved invoice amount on the due date for any invoices uploaded to the KIPROD System.
The supplier executes a receivables purchase agreement, a contract by which the funding institution purchases the right to collect the supplier’s receivables in exchange for upfront cash. This allows a financial institution the right to collect receivables for any invoices uploaded to the KIPROD System from the respective Buyer through a legally binding contract.