Introducing Quick Draw!
Quartix is delivering a ‘best-in-class’ Supply Chain Finance (SCF) solution to middle-market clients (as ‘buyers’) and to their vendors. This product levels the playing field for them, as only Fortune 1000s ‘buyers’ have access to this solution today (offered by the universal banks).
In speaking with dozens of middle-market buyers, we’ve identified a repeated pattern of requests.
The ‘missing piece’ our buyers have requested
A common question we received from our prospective and existing SCF buyers was – “can I get this too”?
In order to understand what they meant, remember that our basic SCF product actually finances our buyers’ vendors. It unlocks digital, unsecured discounting of invoices approved by our buyer for these vendors, as a way to reduce friction when the buyer extends payment terms.
Our buyers asked if we could provide a similar on-demand, digital and unsecured short term lending tool for them as well, which would serve as a complementary tool to their existing secured lines with their banks.
And so we did.
Introducing Quick Draw
Quick Draw allows the buyer to pay out invoices up to 4 weeks post the maturity date of the invoice. Quartix pays the vendor(s) on time, and collects payment from the buyer later. This is a short term, unsecured loan made directly to the buyer, available with just one click. Here's an example of how it works.
- Buyer ABC has 3 invoices, totaling $329,424.66, that reach maturity and are payable in 2 days to three different vendors.
- It's peak season, so paying those 3 invoices a couple of weeks later would really be helpful.
- Through Quick Draw, buyer ABC selects the period of time for which this payment would be delayed (1 week, 2 week, 4 weeks), reviews the Quartix offer, and approves the transaction with one click. Done! ABC's payment was just postponed by 2 weeks.
- Quick Draw is completely transparent to the vendors (payment terms are not extended).
“I have my secured lines, Why would I need Quick Draw”?
Here are some scenarios our buyers encountered, which led to their request of the Quick Draw product:
- Reaching credit limits during peak seasons.
- Preference to not use existing lines due to covenants.
- Temporary or unexpected situations where existing credit lines do not satisfy the buyer’s needs
- The need for small amounts of cash that does not justify drawing down from a secured line.
SCF product vs Quick Draw product
Both SCF and Quick Draw use the buyer’s payables data to create and offer short term financing in real time.
However, while SCF finances the vendors (to enable the buyer to extend payment terms), Quick Draw directly finances the buyer to support temporary cash-flow needs, without involving the vendors.
Both products are unsecured and provide measurable, direct benefits to the buyer.
Not here to replace your bank!
Again, Quick Draw is not aimed to replace a buyer’s secured bank facilities. Rather, it complements them. It’s a tool that provides the flexibility most companies need from time to time to deal with temporary crunches, and since it’s unsecured, it co-exists with those secured facilities.
What does it takes to implement Quick Draw?
Nothing! Quick Draw is readily available to all buyers, accessible through the same app that buyers use to manage SCF. Quartix Implementation requires no ERP integration, and going live takes 2-3 weeks on average!