Definition

Building good relationships with suppliers and contract manufactures is important to every corporate. To make this bond more strong and sustainable, mjunction provides a finance facility to the suppliers to ensure reduction of procurement cost to the buyer as well as access to cheaper cost of funds for the suppliers. From the suppliers perspective timely payment by the corporate is key to reinforcing an excellent business relationship with the corporate to ensure a more efficient and cost effective supplier payment and financing system that benefits all. To make this bond more strong mjunction provides a solution which would bring substantial value to both the supplier and the corporate.

Objective

• Reduction in procurement costs for client
• Unsecured working capital financing through Discounting arrangements to improve supplier cash flows

Value Proposition to Corporates

• Paper based payments can be outsourced totally
• Increases attractiveness of corporate to its supplier base
• No bill of exchange
• Access to cheaper funds would lead supplier base to reduce cost of services and goods
• Streamlined payment mechanism

Benefits to Supplier base

• Converting receivables into ready cash
• Attractive cost of fund
• Alternate source of funds greatly reduces financing risks
• Credit line based on business needs
• Unsecured line of credit

Role of financejunction

• mjunction shall provide corporate a single point of contact for the finance process in terms of design, implementation and continuous refinement of the process
• Liaison with multiple banks in order to get the best deal for the entire supplier base of the corporate
• Online integrated internet based platform to support transactions on 365x24x7 basis
• Single window in terms of online visibility of transactions across all locations
• Effective MIS reports