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If your cash management efforts often feel like robbing Peter to pay Paul, you’re not alone. As more buyers lengthen their payment terms from weeks to months, more suppliers find themselves scrambling to muster the cash they need—not only to cover ongoing operating costs, but also to invest in new projects crucial to business growth. For many, that means relying on factoring, bank loans, credit lines, or other costly sources that drive up debt and prove painful to the bottom line.


The whole situation can seem like a zero-sum game, pitting your interests against those of your customers: while they want to boost their financial position by increasing days payable outstanding (DPO), that produces higher days sales outstanding (DSO) for you—the opposite of what you want. (Moreover, buyers who “win” this game can also lose, since cash-strapped suppliers are more likely to perform poorly and raise liquidity risk.)


What’s missing from the equation is a solution that helps both sides succeed—and with Ariba Supply Chain Finance, that solution has arrived.



The golden mean: Balanced benefits for you and your customers


Slated for release in summer 2016, Ariba Supply Chain Finance (SCF) is a global, multi-funder supplier financing platform that helps you and your customers meet key cash management goals. For you, the solution provides a fast, affordable way to get cash when you need it, enabling you to:


  • Turn approved receivables into cash in a way that does not count as debt on your balance sheet
  • Access cash at much lower rates by leveraging your buyer’s cost of capital
  • Reduce DSO by collecting payment sooner
  • Lessen or eliminate dependence on individual banks and lenders
  • Improve visibility into payment status and gain control over when you get paid
  • Optimize working capital and plan spending and investments more effectively so you can hire extra workers, buy new equipment, launch key projects, and expand business scope


At the same time, Ariba SCF benefits buyers by letting them extend DPO, increase free cash flow from payables by standardizing and rationalizing payment terms, and lower risk by offering a lower-cost financing option to their suppliers—including you. The result? Instead of competing with your customers, you can work collaboratively with them through a solution that drives mutual gain.


Flexible, scalable, and secure


Ariba SCF taps into the purchasing power of a leading multibank platform with more than 50 fund participants. This helps eliminate the risks associated with relying on proprietary, single-funder solutions—since even if one funder leaves, you still have plenty of others to work with. And as an integral component of the complete order-to-pay platform available through the Ariba® Network, Ariba SCF comes to you via single sign-on in a familiar environment you already use and understand.


Learn more


For additional information about how Ariba SCF can benefit your business, listen to the “SAP Ariba – Innovations in Payables and Supply Chain Finance” webcast.