Why Tieto?
• Work together with a leading business integration service
provider in Europe.
• Benefit from our leading know-how in high-end banking,
self-service and customer interaction management solutions.
• Profit from our capabilities to create a new business service
layer by combining corporate banking and business
integration services.
• The Tieto Supplier Finance solution is a fully developed
system, in large scale production. Contact Tieto to discuss
options available to adapt the system as a service, enabling
short time to value on a limited investment.
• Get to know our unique and proven co-operation models.
By choosing Tieto you get a complete set of support functions
in the life cycle of the product. We bring banking expertise
with local presence within a large-scale and resourceful
organization that are here to stay.
• Credibility based on advanced home market in Nordic
countries: payments automation and real time execution,
e-invoicing and e-banking.
• Tieto has a central role in EU and UNCEFACT standardization,
and participates in ISO20022.
• Trust Tieto as a well-established and large enough
company to provide its customers with services that are
business critical.
Please contact Tieto Corporate Banking
jane.strom-pedersen@tieto.com / phone: +47 91131224 or
­dagfinn.loen@tieto.com / phone: +47 90855559
­www.tieto.com
Supplier Finance
Making working capital work harder
Managing money on the move
How does it work?
There is a constant fine-tuning of the supply chain in corporations. Previously, focus has been on the physical part of
the supply chain – the part where goods are ordered by a
corporate purchaser (buyer) and delivered by a supplier. For
any corporation the goal is to maximize the efficiency of the
supply chain, without causing imbalances in the relationship
between price, quality and logistics.
Increasing use of open account trading in the digital
society and more recently, developments in the financial
markets has fuelled focus on the financial aspect of the
supply chain – the flow of funds in the other direction, from
buyer to supplier.
A buyer is looking to negotiate better terms with numerous
suppliers, in order to preserve working capital positions and
One way of providing Supply Chain Finance is to leverage off the buyer’s credit grade to provide accelerated
payment to selected suppliers. It may sound complicated
– and it is. But it does not have to be difficult.
optimize return on capital. And at the same time suppliers
strive to improve their funding and cash flow. Making working
capital work harder is a common target.
Now, both supplier and buyer can benefit from a shared
settlement system, a supply chain finance solution, operated
by the buyer’s bank and where the supplier may receive
accelerated settlement at a discount. In effect, the buyer is
pushing funding up the supply chain in a way that benefits
both parties.
Tieto’s supply chain finance solution encourages a
corporation to use the same bank for all of these types of
transactions. The banks that offer their customers our supply
chain finance solution therefore enjoy retained control of the
customer’s transactions and funding operations.
• File upload
• Authorisation
• Visibility
• Manage payables
• Legal acceptance
• Funding reports
• Settlements reports
• Print and export
Not with Tieto Supplier Finance solution. Via a selfexplanatory web interface the bank, the buyer and
the different suppliers do their business. The Supplier
Finance engine does the real work.
• Visibility
• Legal acceptance
• Optional select
• Accelerated settlement
• Activity reports
• Print and export
BANK
• Comprehensive Monitoring functionality
• Exception handling
• Agreements Setup and Maintenance
• Audit • Static Data Maintenance
SUPPLIER FINANCE ENGINE
• Bank functions • Buyer functions
• Supplier functions
CORPORATE BUYER
Tieto’s Supplier Finance solution is a comprehensive, end-to-end solution supporting
corporate STP. It enables banks to offer a new
funding service to corporate customers. The
bank’s risk is against the buyer, already a trusted and rated customer. The system contains
extensive monitoring capability and exception handling. Utilisation of Buyer credit lines,
internal bank accounting and general ledger
entries are also all automatically managed.
Benefits for the buyer
The bank gets
The suppliers get
• Increased competitiveness since
• A new financing product generating
profit from bank’s existing customers’
supply chains
• A continuous revenue stream from
every financing agreement
• Increased customer retention
• A low risk business since the clients
are already rated
• Financing for working capital needs
can be initiated immediately following
buyer approval of an invoice
• Option to select invoices to be funded,
matching funding to requirements
• A 100% funding of invoice value
– not 80% that is typical with invoicing
finance products
they may negotiate better trade terms
and maximize returns on capital in the
supply chain
• Improved supply chain management
• Strengthened buyer
– supplier relationships
SUPPLIERS
Buyer corporations load invoices either by file
directly from their ERP system, or as a feed
from e-invoicing channels. Once approved
by buyer, the supplier is given access to
non-recourse funding. The buyer has on-line
visibility of statuses.
The supplier has the option to receive
funding immediately, or to select transactions
for payment to match funding requirments.
Invoices selected for settlement are
discounted at a rate based on the buyer’s
credit rating. The Supplier customer has
visibility of payables approved for accelerated
settlement.
Tieto’s Supplier Finance solution is in live
production. It is a multibank solution based
on modern technical architecture and userfriendly thin web-based clients for all user
interfaces.
Getting the whole picture
Tieto’s Supplier Finance solution has been developed by
Corporate Banking and comprises part of the Payments
suite of products. This is a highly competitive, modern
and proven suite of applications meeting a bank’s requirements for efficient, automated and straight through payment processing (STP).
The Supplier Finance solution is complementary to the
Payments suite of products, and can be installed and
interfaced seamlessly to the Payments Engine and Static
Data Repository. The solution can also be implemented
independently.
Managing money on the move
How does it work?
There is a constant fine-tuning of the supply chain in corporations. Previously, focus has been on the physical part of
the supply chain – the part where goods are ordered by a
corporate purchaser (buyer) and delivered by a supplier. For
any corporation the goal is to maximize the efficiency of the
supply chain, without causing imbalances in the relationship
between price, quality and logistics.
Increasing use of open account trading in the digital
society and more recently, developments in the financial
markets has fuelled focus on the financial aspect of the
supply chain – the flow of funds in the other direction, from
buyer to supplier.
A buyer is looking to negotiate better terms with numerous
suppliers, in order to preserve working capital positions and
One way of providing Supply Chain Finance is to leverage off the buyer’s credit grade to provide accelerated
payment to selected suppliers. It may sound complicated
– and it is. But it does not have to be difficult.
optimize return on capital. And at the same time suppliers
strive to improve their funding and cash flow. Making working
capital work harder is a common target.
Now, both supplier and buyer can benefit from a shared
settlement system, a supply chain finance solution, operated
by the buyer’s bank and where the supplier may receive
accelerated settlement at a discount. In effect, the buyer is
pushing funding up the supply chain in a way that benefits
both parties.
Tieto’s supply chain finance solution encourages a
corporation to use the same bank for all of these types of
transactions. The banks that offer their customers our supply
chain finance solution therefore enjoy retained control of the
customer’s transactions and funding operations.
• File upload
• Authorisation
• Visibility
• Manage payables
• Legal acceptance
• Funding reports
• Settlements reports
• Print and export
Not with Tieto Supplier Finance solution. Via a selfexplanatory web interface the bank, the buyer and
the different suppliers do their business. The Supplier
Finance engine does the real work.
• Visibility
• Legal acceptance
• Optional select
• Accelerated settlement
• Activity reports
• Print and export
BANK
• Comprehensive Monitoring functionality
• Exception handling
• Agreements Setup and Maintenance
• Audit • Static Data Maintenance
SUPPLIER FINANCE ENGINE
• Bank functions • Buyer functions
• Supplier functions
CORPORATE BUYER
Tieto’s Supplier Finance solution is a comprehensive, end-to-end solution supporting
corporate STP. It enables banks to offer a new
funding service to corporate customers. The
bank’s risk is against the buyer, already a trusted and rated customer. The system contains
extensive monitoring capability and exception handling. Utilisation of Buyer credit lines,
internal bank accounting and general ledger
entries are also all automatically managed.
Benefits for the buyer
The bank gets
The suppliers get
• Increased competitiveness since
• A new financing product generating
profit from bank’s existing customers’
supply chains
• A continuous revenue stream from
every financing agreement
• Increased customer retention
• A low risk business since the clients
are already rated
• Financing for working capital needs
can be initiated immediately following
buyer approval of an invoice
• Option to select invoices to be funded,
matching funding to requirements
• A 100% funding of invoice value
– not 80% that is typical with invoicing
finance products
they may negotiate better trade terms
and maximize returns on capital in the
supply chain
• Improved supply chain management
• Strengthened buyer
– supplier relationships
SUPPLIERS
Buyer corporations load invoices either by file
directly from their ERP system, or as a feed
from e-invoicing channels. Once approved
by buyer, the supplier is given access to
non-recourse funding. The buyer has on-line
visibility of statuses.
The supplier has the option to receive
funding immediately, or to select transactions
for payment to match funding requirments.
Invoices selected for settlement are
discounted at a rate based on the buyer’s
credit rating. The Supplier customer has
visibility of payables approved for accelerated
settlement.
Tieto’s Supplier Finance solution is in live
production. It is a multibank solution based
on modern technical architecture and userfriendly thin web-based clients for all user
interfaces.
Getting the whole picture
Tieto’s Supplier Finance solution has been developed by
Corporate Banking and comprises part of the Payments
suite of products. This is a highly competitive, modern
and proven suite of applications meeting a bank’s requirements for efficient, automated and straight through payment processing (STP).
The Supplier Finance solution is complementary to the
Payments suite of products, and can be installed and
interfaced seamlessly to the Payments Engine and Static
Data Repository. The solution can also be implemented
independently.
Why Tieto?
• Work together with a leading business integration service
provider in Europe.
• Benefit from our leading know-how in high-end banking,
self-service and customer interaction management solutions.
• Profit from our capabilities to create a new business service
layer by combining corporate banking and business
integration services.
• The Tieto Supplier Finance solution is a fully developed
system, in large scale production. Contact Tieto to discuss
options available to adapt the system as a service, enabling
short time to value on a limited investment.
• Get to know our unique and proven co-operation models.
By choosing Tieto you get a complete set of support functions
in the life cycle of the product. We bring banking expertise
with local presence within a large-scale and resourceful
organization that are here to stay.
• Credibility based on advanced home market in Nordic
countries: payments automation and real time execution,
e-invoicing and e-banking.
• Tieto has a central role in EU and UNCEFACT standardization,
and participates in ISO20022.
• Trust Tieto as a well-established and large enough
company to provide its customers with services that are
business critical.
Please contact Tieto Corporate Banking
jane.strom-pedersen@tieto.com / phone: +47 91131224 or
­dagfinn.loen@tieto.com / phone: +47 90855559
­www.tieto.com
Supplier Finance
Making working capital work harder