- Enterprises across the United Kingdom and the United States have tapped Tungsten Network for over £300 million of funding since it relaunched its trade finance business in January 2017.
- On a daily average basis, monthly invoice outstandings have grown from £11.4 million in December 2016 to £43.4 million in April 2018, with a peak of £54.5 million at 31 December.
- Strong prospect for further growth as financing products have recently been launched in Canada, Ireland and the Netherlands.
- Funding partnerships expanded to include Insight Investments, Orbian, Funding Circle and BlueVine in order to offer a range of trade finance solutions.
Tungsten Network, the digital automation platform owned by Tungsten Corporation that removes friction from the global supply chain, continues to demonstrate progress in trade finance. Since January 2017, Tungsten Network has funded a total of over £300 million of invoices to help companies across the United Kingdom and the United States manage their working capital.
Tungsten Network’s trade finance activities were relaunched at the start of 2017 under the leadership of Prabhat Vira, President, Tungsten Network Finance, with a rebuilt technology infrastructure and a repositioned operational model. Since relaunching, it has grown its user base, funding partnerships and range of products.
Tungsten Network Finance now offers four distinct trade finance solutions that meet different market needs: invoice discounting through the Tungsten Network Early Payment facility in its Portal; flexible lines of credit; receivables financing and supply chain finance. Leveraging the connectivity that comes from joining Tungsten Network, both SME and large customers are matching working capital needs with a flexible user experience, removing the friction that impacts cash flow.
“Passing £300 million of financing represents a milestone worth acknowledging for our business and demonstrates our progress in realising the significant potential of providing trade finance solutions to the customers of Tungsten Network,” said Prabhat Vira.
“The funding partnerships have allowed us to grow our suite of products to meet the diverse financing needs of more of the customers of Tungsten Network, from our smaller UK customers having access to debt facilities of up to £500,000, through to some of our larger, multinational customers taking advantage of a ‘one-stop’ platform for e-invoicing linked receivables financing.
“Most importantly, we are focussed on solutions that work for our customers. On average, Tungsten Network Early Payment users currently finance over half of the e-invoices that they issue digitally via the Tungsten Network portal, demonstrating that the product has become an important part of their working capital management. Since the relaunch, 129 Tungsten Network customers have taken early payment.”
Les Brooke, Finance Director, EFM Fleet Services Limited, said: “We have used Tungsten Network for over 12 months now, principally to utilise the early payment facility that it offers.
“This is ‘head and shoulders’ above our previous invoice discounting facility in that we choose when we need it, have access to 100% of the funds due to us – less very competitive charges – and it substantially improves the gearing in our balance sheet.”
Tungsten Network Finance has recently expanded its geographical reach beyond the United Kingdom and the United States, to now include Canada, Ireland and the Netherlands, with funds available in GBP, USD and EUR. This geographical expansion will continue over the course of 2018, with work already underway to make the product available in more countries in Europe and the Americas.
Richard Hurwitz, CEO, Tungsten Corporation, said: “All the metrics we monitor are improving. These include customer acquisition numbers, balances outstanding and total volume of loans, which indicates that we have successfully relaunched a trade finance model that is now sustainable. Customers of Tungsten Network are leveraging the benefits of the digital platform we provide by taking funding opportunities through the same portal in which they manage their invoicing activities.
“What is even more encouraging is that we are now having conversations with Finance Directors around working capital, that lead them to embrace the digital automation of their accounts payable and accounts receivable transactional flows.
“Tungsten’s customers are coming to see the Network and its various utilities as a strategic tool for their Finance and Treasury teams, enabling them to grow and more easily move cash to the benefit of the global supply chain.”
George Beard +44 (0)7980 816170
Kerry Gould +44 (0)7872 811 735
About Tungsten Network
Tungsten Corporation (LSE: TUNG) aims to be the world’s most trusted business transaction network by using data intelligently to strengthen the global supply chain.
Tungsten Network is a secure digital automation platform that brings businesses and their suppliers closer together with unique technology that revolutionises invoice processing, maximises efficiency and improves cash flow. Delivering trusted connections and streamlined transactions, the network also provides users with real-time spend analysis and offers suppliers access to invoice financing through Tungsten Network Finance, a form of alternative finance for businesses.
Tungsten Network processes invoices for 67 percent of the FTSE 100 and 72 percent of the Fortune 500. It enables suppliers to submit tax compliant e-invoices in 48 countries, and last year processed transactions worth over £155bn for organisations such as Alliance Data, Cargill, Deutsche Lufthansa, General Motors, GlaxoSmithKline, Mondelēz International, Henkel, IBM, Kellogg’s and the US Federal Government.
Trusted, passionate and proven, Tungsten is making the digitisation of global commerce between buyers and suppliers faster, easier and smarter.