ENGIE and BNP Paribas Factor are partnering to set up a pilot collaborative reverse factoring program on an international scale.
In early 2015, energy sector leader ENGIE embarked upon a study to find the best business solution as support for its suppliers. The resulting study showed the interest of “reverse factoring” to achieve this end, especially for mid-size companies.
After consulting with market players, the Group chose the reverse factoring service of BNP Paribas Factor to offer ENGIE suppliers short-term financing at a single, most attractive rate. Suppliers subscribing to the program will be able to send their invoices electronically to ENGIE and receive immediate payment without waiting for payment dates, thus benefiting from immediate liquidity to extend and develop their activity.
The program’s first phase will cover up to 8,000 French suppliers and will be offered in early 2016 for durations of six to ten months. The program will also enable ENGIE to enhance its purchasing management and stabilize its supply chain. The objective is to extend the arrangement to all Group entities in France, in anticipation of its international development.
“This reverse factoring program fits perfectly with ENGIE’s desire to be a responsible partner in the life of mid-size companies. We work on a daily basis with a large number of companies and are aware of our impact on these partners’ development. Today, we anticipate their needs by offering them an innovative cash-management solution,” explains Sergio Val, Senior Vice President, Corporate, in charge of the ENGIE Group’s M&A, Financing and Treasury Division.
“We are thrilled with the confidence demonstrated in this program by ENGIE and are anxious to put the entire expertise of BNP Paribas Factor at its disposal. The partnership developed with ENGIE makes possible a simple, rapid financing solution at competitive pricing for all its suppliers. Through the signature of this reverse factoring facility we reaffirm our ability to take into account the concerns and requirements of companies of all sizes to support the real economy,” concluded Ms. Bozana Douriez, CEO of BNP Paribas Factor.
Read the Press Release