We focus on 3 game changing activities in supply chain working
capital optimization for platform companies:
a. First, we benchmark working capital and earnings
using a best practices scorecard. This consulting service serves
as an important prerequisite to our financial structuring
engagement work.
b. Second, we help to efficiently unlock new sources
of cash beyond the traditional asset pools of ABL and on-balance
sheet cash flow debt. We do this via structuring GAAP compliant
off-balance sheet programs created around Synthetic Payables,
innovative receivable finance structures, Toll Manufacturing,
Toll Distribution, and Inventory Management. We also combine
possible business change/improvements with more efficient tax
structuring.
c. Third, SCFCAP deploys our SCFCAP.com IT
procurement utility which connects financial supply chain trade
flows from a corporation’s ERP system to our structuring programs
and ultimately to our global banking and hedge fund partners'
conduit. SCFCAP.com separates credit risk from business
performance risk; it eliminates business performance risk
through "buyer confirmation". Once credit risk is separated
from performance risk, it can be sold individually or on a
portfolio basis to credit funds. SCFCAP.com also provides
links into the credit insurance market to synthetically create
an investment grade instrument financable privately (banks or
credit funds) or through capital markets.