What is FCIreverse?

REVERSE
POWERED BY DEMICA
Opportunities in the market’s first network reverse factoring solution

Robust Legal Relationship State-of-the-art

Framework Approach technology

Based on FCI’s proven interfactor Rather than a transactional Award winning, multijurisdictional,
framework and the new “General approach to funding. multicurrency, multilingual
Rules for FCIreverse”. platform with integrated supplier
onboarding.

Network Increase First mover

Solution Revenues advantage

First global Supply Chain Finance Factors are able to generate Pilots have first mover advantages
solution, leveraging FCI’s 400 additional revenues.* in their markets.
members in 91 countries.

* Increase revenues and grow your assets:

1. Buyer’s Financial Institution (Import Factor)
• by arranging SCF programmes for buyer clients that have domestic or multiregional supply chains
• without incurring any origination costs, through correspondent (Export) Factor activity
• by opening new markets: mid-market, import markets, multinational supply chains
2. Supplier’s Financial Institution (Export Factor)
• by onboarding suppliers in your local market
• by opening new markets: mid-market, export markets, multinational supply chains

FCIreverse has been developed by FCI to serve buyer - supplier relationships without
recourse (across multiple jurisdictions).
FCIreverse is a Supply Chain Finance (SCF) solution for financing buyer-approved
receivables. FCIreverse combines the power of the FCI member network, the solid FCI
interfactor framework and the General Rules for FCIreverse with Demica’s award winning
technology. It provides a unique SCF platform solution, enabling FCI members to initiate
and participate in both local and multi-regional SCF/reverse factoring programmes to
increase revenues and grow assets.

SCF (or reverse factoring as it is also known) serves to improve working capital for both
buyers and their suppliers, releasing cash through increased Days Payables Outstanding
(DPO) for buyers and reduced Days Sales Outstanding (DSO) for suppliers. It enables
buyers to improve supplier management, negotiate better terms and improve cashflow
while suppliers are able to diversify their funding sources, access competitively priced
financing, mitigate exposure concentration and improve cashflow forecasting.

FCIreverse is a flexible product as:

• it is applicable to domestic SCF transactions, incorporating Buyer, Supplier and Factor
(3-Corner Model)
• it is applicable to multinational SCF transactions by tapping into FCI’s Network, being
able to on-board Suppliers in foreign jurisdictions (3+ & 4-Corner Models)
3-Corner Model
Irrevocably approved invoices
FCI Member
Buyer
(with Demica platform)
(FCI Member’s client)

Advance payment of
approved invoices, or
Invoices payment at maturity

Supplier

The 3-Corner Model is the simplest set-up with an «anchor buyer», with good credit ratings/experience and a strong IT
infrastructure, signing a contract with a factor who uses the Demica platform.
Buyer transfers irrevocably approved invoices (free of any dilution risk) that allows the factor to offer the suppliers 100% without
recourse funding by leveraging on the favorable credit rating conditions of the anchor buyer.
Suppliers may also choose not to get any advance payment and are then paid at maturity by the factor.

4-Corner Model
1. Goods and invoices

Buyer Supplier (SU)

(FCI Member’s client)
5. SU
ce
i nvoi accepts
e d and
nfi rm
2. Buyer
8. Buyer d s co 4. EF sends assigns
confirms en invoices
pays IF 3. IF s purchase
invoices offer to SU 6. EF
effects
advance
payment
to SU
3. IF sends confirmed invoice
9. IF to pay EF
FCI Member FCI Member
Anchor Import Factor (IF) Anchor Export Factor (EF)

7. Assignment of invoice (subject to legal

documentation) from EF to IF

The Anchor (Import) Factor originates funds and runs the local portion of an SCF programme with the support of correspondent
(Export) Factor(s) in foreign jurisdictions.
By leveraging on the local market capabilities of other FCI members, the Anchor (Import) Factor is able to arrange global programmes,
while the correspondent (Export) Factor is able to generate new revenues.
The 4-Corner Model is used for suppliers in geographical areas that the Import Factor cannot service. It implies the cooperation of an
Export and an Import Factor, as in the traditional FCI Two-Factor operations.
A new set of legal rules, the General Rules for FCIreverse, have been developed to provide a solid legal framework for facilitating this
model.
Buyer Supplier

• Enhanced reputation with suppliers • No impact on supplier’s credit lines as the

• Ability to negotiate better payment
terms and thus improve working capital
requirements
• Enhancement of image through supporting
SMEs and promoting economic growth
• Reduction of administrative costs through
payment process rationalisation and
improvement
• No additional IT tool required
financing is based on the buyer’s financial
strength
• Lower costs based on the creditworthiness
of the buyer
• Receivables can be removed (de-recognized)
from the Balance Sheet
• No additional IT tool required
• Early visibility of approved invoices & better
cash flow management
• No separate cash accounts are required to
receive advance payments

Factor

• Credit risks fully allocated on buyer

• Access to multiple factoring transactions
• Benefit from new customer relationships
• Cross selling opportunities
• Increase profitability

FCI members have their business protected as the buyer’s or the supplier’s financial institutions
(Import Factor or Export Factor) will be the only ones entitled to finance the confirmed invoices.

FCI
Keizersgracht 559,
1017 DR Amsterdam
The Netherlands

E: fcireverse@fci.nl
fci@fci.nl
W: www.fci.nl
T: +31 20 6270 306