What are the differences between a buyer- and supplier-centric SCF model? What are the pros and cons of each?
The main difference is who begins the process. In the context of ArtisPay, a buyer-centric program involves buyer initiation, meaning the buyer (the lender’s client) uploads approved invoices for payment. Whereas, in our supplier-centric SCF model, the supplier initiates the process by uploading an invoice that goes to their buyer for review and approval. We support both models concurrently. It’s important to realize that these models are complementary and not at odds with one another.
- No change to the client’s or their supplier’s current processes
- Extremely fast to adopt and realize the benefits of payment extension and consolidation
- No A/P automation of workflow
- No e-invoicing
- Accelerates the approval time for invoices
- Suppliers are able to submit invoices faster and more efficiently
- A/P efficiency through automation
- Requires a change in the A/P process for the buyer and seller
- Longer supplier adoption process
In both scenarios, bank and lender clients have more working capital, reduced payment costs, simplified payment processing, and their suppliers assume control of their own invoices. Determining which approach is best depends on the needs and attributes of the company, and we help our clients navigate these steps.
A founder of Artis Trade Systems, Jamie Clemons, CPA, started his career working in business risk consulting at Protiviti after attending the University of Arizona on an academic scholarship where he graduated Summa Cum Laude with dual degrees in Finance and Accounting. During his time in consulting, Jamie served clients in various industries including Airline, Banking, Software, Pharmaceutical, and Education among others.