Podcasts

PrimeRevenue’s Tom Roberts: ‘More companies are optimizing their cash conversion cycle’

  • Tom Roberts heads marketing at supply chain finance platform, PrimeRevenue
  • His marketing career includes stints at other fintech firms like DST, ETrade, CashEdge, and Fiserv
close

Email a Friend

Supply chain finance is a part of fintech that doesn’t share the same limelight with other sectors like consumer lending or consumer payments. Throughout history, companies have typically turned to one or two financial providers to help them free up money in their supply chains.

That’s all changing with companies like PrimeRevenue, a supply chain finance platform for buyers and sellers that also has 50 different financial providers baked in. Based in Atlanta, the company works globally across borders and currencies. Tom Roberts heads marketing, and is the guest today on the Tearsheet Podcast.

Roberts talks about the world of supply chain finance, trends and opportunities, as well as his own marketing career in fintech that includes stints at DST, ETrade, CashEdge, and Fiserv.

SubscribeiTunes I SoundCloud

Below are highlights from the episode, edited for clarity.

What’s driving companies to adopt supply chain financing?

For larger enterprises, it’s trying to find ways to optimize their cash conversion cycle, or the time between when they pay and get paid. The more you can optimize that, the better off you are. Most of the companies we work with are trying to respond to pressures in the marketplace, so they have strategic initiatives to drive innovation, respond to changes in customer demand and competition, or find growth through acquisitions. So, they’re trying to fund strategic initiatives with supply chain finance. For large enough companies, supply chain finance can deliver cash flow gains of hundreds of millions of dollars or billions of dollars.

Can you give an example of a company that used supply chain finance to unlock this type of cash?

Auto parts manufacturer, Mann + Hummel, is based in Germany and recently won an award for their program. They supply auto parts to ORMs and the aftermarket. They’ve used supply chain finance to really grow their business — they’ve doubled in size in the reasonably short amount of time we’ve been working with them. They’ve built a new corporate headquarters in Germany and an innovation center in the U.S. that’s helped drive the overall growth of the business.

Do you see yourself as a technology or finance company?

We have to be a solutions company, so technology underpins everything we do. We operate in 70 countries, in 15 different languages, and more than 15 different currencies. So, we need a technology platform to do what we do in a scalable fashion. That said, if we were only a technology company, we wouldn’t have the business we have today where we plug in 50-plus banks and non-bank funders into our platform.

So, we basically sell a reasonably sophisticated financial product and financial solution, but all of our consultative solutions people, our data and analytics, and our experience gets wrapped around the technology to provide our total solution.

What’s the impact of providing a multi-lender solution?

As with every company I’ve ever worked with, we don’t have a greenfield market and have plenty of competition. We compete primarily with some of the world’s largest financial institutions, like Citi, Wells Fargo, and Deutsche Bank. Banks typically make decisions based on their credit risk, the regulatory climate and geography. We’ve seen multiple instances where very large lenders pull out of specific jurisdictions or pull out of certain programs.

If you’re a large enterprise running a program with hundreds or even thousands of suppliers on it, that disruption can be very damaging to your own financial position, as well as to the health and responsiveness to your suppliers. So, we’ve put together a multi-funder model to mitigate against that risk and to provide program sustainability. We’re not a great fit for companies that want to work with just one bank.

0 comments on “PrimeRevenue’s Tom Roberts: ‘More companies are optimizing their cash conversion cycle’”

Podcasts

The challenges and opportunities for stablecoins in traditional finance with Paxos’ Mike Coscetta

  • There's an acceptance that stablecoins will be the intersection between traditional finance and the new world of blockchain.
  • But is that right? We speak to Paxos' head of revenue, Mike Coscetta to learn more.
Zachary Miller | May 11, 2022
Modern Marketing, Podcasts

The Acquire Podcast Ep. 8: Billboards, donuts, and QR codes: Flexbase is building awareness

  • Flexbase’s CEO Zaid Rahman and head of growth Joey Randazzo joins us on the Acquire Podcast.
  • From blanketing one city at a time, putting up billboards off highways, and shipping mysterious donut boxes – their awareness campaign is doing new things.
Rebecca Alma Cohen | May 10, 2022
Payments, Podcasts

What’s Happening in Payments Ep. 6: Quontic’s payment ring, Visa’s move into NFTs, and the new Square Stand POS system

  • This week, we discuss why Quontic Bank decided to launch a contactless payment ring.
  • We also talk about Visa's recent crypto and NFT-related activities, as well as Block's upgraded Square Stand POS system.
Ismail Umar | May 05, 2022
Podcasts, Sponsored

The Identity Proofing Guide: Identity in the Metaverse and Web3

  • In the fourth part of our series on digital identity verification with advisory firm, Ulysses Partners, we were joined by financial industry and fintech expert David Milligan.
  • Watch or listen to our fireside chat about the future of identity proofing, and why it will only become more critical in the Metaverse and Web3.
Ulysses Partners | April 28, 2022
Modern Marketing, Podcasts

The Acquire Podcast Ep. 7: ‘Founders not meeting with their customers are doing it wrong’: Conduit’s Kirill Gertman

  • Conduit’s co-founder and CEO Kirill Gertman joins us on the Acquire Podcast.
  • ‘If you're a founder and are not talking to your customers,’ he says, ‘I’m sorry but you're doing it wrong.’
Rebecca Alma Cohen | April 26, 2022
More Articles