COVID-19 Amplifies Supply Chain Complexities. Quartix Unties Them

COVID-19 has undeniably left a significant impact on global trade and businesses, introducing uncertainties and elevated operating risks. The pandemic has disrupted commercial operating priorities, particularly supply chain complexities. In this post, we will explore how COVID-19 has magnified these challenges and discuss how Quartix can effectively address them by leveraging real-time data and external liquidity in a collaborative manner.

COVID-19 Brings Liquidity and Business Continuity Challenges to the Forefront:

For manufacturers, distributors, and retailers, the following priorities have taken center stage:

1. Maintaining liquidity: In times of uncertainty, cash becomes crucial.
2. Ensuring business continuity: Sustaining a seamless supply chain flow, especially for critical vendors, is of utmost importance.
3. Securing alternative financing options: With the economy slowing down, banks may reduce credit exposure to small and mid-sized enterprises.

While these priorities are always important, they become particularly prominent during unprecedented events such as the COVID-19 pandemic.

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COVID-19 Amplifies Conflicts Impacting these Priorities:

Extending payment terms with vendors is a key strategy to maintain liquidity, significantly improving a buyer's cash position. However, this approach may conflict with the goal of ensuring business continuity, as it could negatively impact the vendor's own operations. Delaying payment by a buyer means a delayed collection for the vendor—a zero-sum game.

Although this conflict is not new, the focus on cash balances for both buyers and vendors has intensified. Coupled with the likelihood of banks reducing credit exposure to small and mid-sized enterprises, the trade cycle dilemma becomes increasingly important, potentially introducing friction and risk into supply chain relationships.

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Quartix Offers a Swift Resolution to these Conflicts:

Quartix introduces external liquidity into the equation, leveraging real-time data to enhance transparency and optimize borrowing costs. This transformative approach benefits all parties involved when buyers sign up on the Quartix app and onboard their selected vendors.

Here's how it works:

1. Faster collections for vendors: By discounting approved invoices, vendors can access optional discount offers at attractive rates, facilitated by the payables data shared with Quartix.
2. Extended payment terms for buyers (such as yourself): Quartix simplifies the process of extending payment terms by offering early payment options to vendors. Buyers can pay beyond the current invoice terms without impacting the vendors, as Quartix ensures timely payment on their behalf.
3. Collaboration for increased liquidity: Quartix operates as a collaborative platform, leveraging payables data to optimize rates for vendors, thereby enhancing buyers' flexibility to extend payment terms. This mutually beneficial approach strengthens liquidity and business continuity for both buyers and vendors.

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Quick and Easy Onboarding for Buyers and Vendors:

In the face of uncertain times, onboarding with Quartix is a straightforward process that can be completed efficiently.

For buyers such as yourself, the process involves:

1. An unsecured service agreement that coexists with existing bank credit facilities.
2. A brief credit check to determine eligibility, which can be completed in a few days.
3. No requirement for ERP integration.
4. Onboarding selected and approved vendors onto the Quartix platform.

Onboarding Quartix as a vendor is even simpler, with a non-recourse invoice purchase agreement that can be read and executed in just 10 minutes.

Moreover, the entire onboarding and app utilization process can be done remotely, ensuring seamless integration even when employees are working from home, as long as there is internet access.

Conclusion:

While the duration of COVID-19's impact remains uncertain, onboarding with Quartix offers a practical and timely solution. Overcoming liquidity and business continuity challenges, Quartix enables buyers and vendors to navigate these complex times collaboratively.

‍Already on Quartix as a buyer? You can start enjoying ‘vendor’ benefits too, by referring us to customers (“buyers”) you’d like to collect faster from.

Already on Quartix as a vendor? You can collect more invoices faster if you refer other buyers to us, or become a buyer yourself by on-boarding your own selected vendors!

Not on Quartix just yet? Schedule a demo and let’s see how we can work together!

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