Invoice track and trace network innopay

tomorrow’s transactions today

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From ‘fire and forget’ to ‘fire and confirm’ invoicing Key outcomes feasibility Status Based Receivables Finance (SBRF)

Douwe Lycklama, SCF Community, Wassenaar, 10 December 2014

2 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Starting point: electronic invoicing & financing

3 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Key Q: Does standardization of invoice status info and its exchange improve financeability of receivables?

Feasibility study report

4 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Today’s ‘fire & forget’ invoicing practice

5 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Today’s invoicing ‘black hole’

6 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Today’s limited visibility on invoice status

7 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Today’s cumbersome process of finding out what happened with receivable invoices

8 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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In short, ‘fire & forget’ invoicing is not optimal supplier perspective

no cash flow visibility, less financing options

9 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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In short, ‘fire & forget’ invoicing is not optimal financier perspective

hard to assess risk, limited STP

10 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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‘Fire & Confirm’ invoicing is needed

11 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Enabling ‘Track & Trace’ of invoices, cf. e-commerce Will pay invoice Processing invoice Got invoice

Accepted for shipment Driver underway Delivered

invo

icin

g E-

com

me

rce

Source: Innopay

12 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Required components to realize this are available today! 1

. Dig

ital

ad

min

istr

atio

ns

2. T

he

inte

rnet

3

. Pro

toco

ls

Source: Innopay

13 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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It is all about connecting the dots!

Source: Innopay

14 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Conceptual model Status Based Receivables Finance (SBRF)

Buyer

Status broker

Supplier Financier

Status aggregator Finance exchange

Existing invoicing / ERP solution

Existing invoicing / ERP solution

?

1. Electronic invoice

2. Invoice approval

3. Status information broadcast

5. Status information broadcast

4. Finance request 6. Acceptance

7, Pre payment (‘deal closure’)

?

trade

Four corner model Source: Innopay

15 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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E-invoicing service

provider

SBRF is inclusive, catering for all invoicing models

Receiver

Status broker

Sender

Status aggregator

Receiving service Sending service

Bilateral

Multilateral

E-invoicing service

provider

E-invoicing service

provider

Source: Innopay

16 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Towards a ‘one click-finance’ experience for SMEs

Source: Innopay

17 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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SBRF = Amazon’s one-click buy for financing

Source: Innopay

18 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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It all starts with ‘Track & Trace’ of invoices Will pay invoice Processing invoice Got invoice

Accepted for shipment Driver underway Delivered

invo

icin

g E-

com

me

rce

Source: Innopay

19 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Q4 2014: SBRF assessed with relevant stakeholders in the field

Banks (asset-based lending & reverse factoring)

Industry organizations Platform providers

Buyers

ERP/Accounting software/e-invoicing providers

Source: Innopay

20 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Overall research outcomes

Benefits are recognized, but need to be quantified 1

Buyer invoice approval process is key 2

Invoice approval status evolves from ‘self-declared’ to ‘guaranteed’ 3

Buyer risk assessment could be enriched through invoice status information 4

Governance for trust in the SBRF model 5

Source: Innopay

21 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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Next phase: ‘coalition of the willing’ and scoping SBRF

Assemble founding coalition

Jan-Apr 2015 (4 months)

Business and Governance working group

Development SBRF modelin 3 cycles

Monthly working group meetings Monthly working group meetings

Phase 1Coalition & Scoping

Phase 2 Standardization & Pilot

Technical infrastructure working group

Functionality and application working group

Legal working group

SBR

F sp

eci

fica

tio

ns

+ p

ilot

pla

n

Develop user stories

Assess benefits per stakeholder

Assess business model

Assess legal considerations

Design SBRFoperating model

Design SBRF governance

Develop project plan next phase

Develop decision making document

Develop pilot plan next phase

Develop decision making document

Apr-Jul 2015 (3 months)

Go / No-go Go / No-go

Phase 3 Implementation & Soft launch

Implementation, participant 1

Implementation, participant 2

Implementation, participant ‘n’

Select pilot customers (buyers and suppliers)

Execute pilot & testing (soft launch)

Develop intro plan next phase

Develop decision making document

Go / No-go

Intr

od

uct

ion

pla

n L

ive

ph

ase

Implement governance

Phase 4 Live and Activation campaigns

Develop communication plan

Set-up activation campaigns

Grow SBRF network

Grow participating customers (buyers and suppliers)

Monitor, maintain and change management specifications

Jul-Sep 2015 (2 months)

Sep-Dec 2015 (4 months)

Sco

pin

g +

pro

ject

pla

n

Source: Innopay

Go/no go #1

Jan- Apr 2015

22 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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From ‘fire & forget’ towards ‘fire & confirm’ invoicing

Track & Trace of

invoices!

23 Status Based Receivables Finance (SBRF). SCF Forum presentation. Douwe Lycklama. 10 December 2014. © Innopay BV. All rights reserved.

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tomorrow’s transactions today

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Thank you For your attention

Douwe Lycklama

[email protected]

+31 6 557 11 150

Mounaim Cortet

[email protected]

+31 6 417 686 51