TH
Pantavanij Co., Ltd. is advancing its goal to stabilize buyers and sellers in Thailand’s largest procurement business by launching a new Supply chain finance services for Sellers on the Pantavanij System, in collaboration with IFS Capital (Thailand) Public Co., Ltd., a leader in factoring and other types of financing for over 30 years.
What is Supply chain finance services for Sellers on the Pantavanij System?
The Supply chain finance services is a short-term loan service that involves purchasing trade receivables and converting invoices into cash (purchase orders / delivery notes / bills). Sellers can convert receivables that are waiting for collection according to credit terms into working capital for their business.
Mr. Wichit Srikreephuthana, Managing Director of Pantavanij Co., Ltd., and Mr. Tan Ley Yen, Director and CEO of IFS Capital (Thailand) Public Co., Ltd., sign the Memorandum of Understanding.
It is once again a collaboration with a leading partner in the business sector of Pantavanij. This demonstrates the confidence that IFS Capital has in the company, particularly in the potential of the sellers on the system, which drives the procurement business and has been a long-standing partner with leading buyers.
In terms of expanding the customer base, targeting sellers on the Pantavanij system is a priority. This is because the sellers on the Pantavanij system are numerous and fall within business categories that cover and meet the needs, focusing on medium and small-sized enterprises across various industries, such as services, food, beverages, pharmaceuticals, automotive and automotive parts, paper and packaging, electrical appliances, construction and building materials, plastics, and electronic components.
This aligns with the plan and strengthens Pantavanij’s market expansion into the Southeast Asia region, where IFS Capital provides financial services in Singapore, Malaysia, and Indonesia.
Additionally, the sellers on the system have passed qualifications and assessments from the Supplier 360 service, giving partners confidence in their qualifications and standards, which are at an international and modern level.
Providing Supply chain finance services for sellers helps buyers manage procurement amidst challenges and ensures operations align with sustainable procurement policies. This includes sourcing new vendors to meet objectives of increasing/diversifying the supplier base to reduce/distribute risks from potential disruptions or seeking suppliers with expertise in emerging business dimensions. Additionally, it supports transparency in line with policies for equitable vendor support.
The new vendors that buyers consider for evaluation will be assessed based on their financial situation, business liquidity, and financial planning capabilities.
Good liquidity and financial planning are among the many factors that instill confidence in buyers that vendors will be able to maintain the quality of their product/service delivery.
In terms of the relationship between buyers and vendors, increased payment flexibility from buyers to vendors/suppliers using factoring services will help reduce tension in uncertain situations.
Supply chain finance services will enhance liquidity and enable sellers to access capital more quickly. It also helps stimulate factors related to increasing revenue and profit.
Benefits for Sellers
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Sellers have immediate cash flow and can access funds faster without waiting for buyer payments.
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Convert invoices into cash, receiving up to 90% of the invoice value in advance.*
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Assurance that sellers will receive payments without delays.
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Assistance in managing invoice collections.
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Sellers can plan their business cash flow more flexibly.
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Access to funds for boosting sales or expanding the business.
The introduction of Supply chain finance services marks a significant step for Pantavanij in achieving its goal of delivering and enhancing value for sellers on the system, demonstrating commitment to every seller. It also reflects ongoing service development to meet sellers’ needs, allowing them to adapt and compete quickly in a stable, high-value electronic procurement ecosystem. Additionally, it contributes to the development of sellers’ capabilities in various aspects, as part of the company’s ongoing enhancements through the Supplier 360 service.