Key Benefits for Suppliers
Reducing your cash conversion cycle - the period between receiving customer payments and settling supplier invoices – will significantly lower your working capital requirements. This allows you to do more business with the same capital or to do the same volume of business with less capital; and it will increase your profitability. Voyager - acting as a trusted and well capitalised third party within the bunker transaction – achieves this for you by guaranteeing to pay suppliers for all stems within 10 days of delivery.
Because Voyager also provides extended credit terms to buyers - 36 days on average – buyers using Voyager will receive extended credit terms and suppliers will achieve rapid payment.
In the Voyager system, US Bank extends credit to the buyer, so for a supplier Voyager is effectively a new source of funding based on the creditworthiness of the buyers. How many financing options are currently available to you that are based on your customer’s creditworthiness, not yours?
We have been working with a number of suppliers to quantify the benefits Voyager can deliver to their businesses. In a typical scenario, where the suppliers pay their supplier in 10 days and receive payment from their customers in 30 days, there is close to a one to one relationship between the percentage of business done through Voyager and the percentage reduction in the working capital the supplier requires to fund their business. If you receive payment from Voyager in 10 days instead of the current 30 days, there is a major reduction in working capital needed. In the example illustrated in the graph, by using Voyager for slightly over 40 per cent of their business, the supplier will reduce its working capital requirement by 45 per cent, while also increasing their profit by almost 20 per cent. This is a huge benefit in today’s tougher environment. How many other options do you have available to you right now that can simultaneously increasing profit and reduce the working capital required to fund your business?"
Voyager takes all credit risk out of the bunker transaction. Having Voyager guarantee rapid payment significantly enhances the credit risk profile of your receivables portfolio making your company stronger and more attractive to your financial backers.
In today’s tight credit environment, some bunker suppliers are finding it more difficult to secure credit from their financial backers. With reduced credit availability some suppliers are having difficulty keeping the liquidity required to maintain or expand their businesses, and are also restricted with the payment terms they can offer their customers.
In today’s challenging marketplace, some suppliers are having to reduce customer payment terms. Voyager allows you to differentiate yourself from the competition by giving you the opportunity of offering sales with an average of 36 days credit to your customers at no risk to yourselves – you get paid within 10 days when you deliver on spec fuel.
Currently, there is no open mechanism to differentiate or identify those suppliers that deliver low quality fuel from those that consistently deliver bunkers that are always on-specification. Voyager users have access to an on line historical database of LR FOBAS fuel tests allowing you to prove your high standards to your customers and potential customers.
Credit insurance is becoming harder to place and premiums are increasing. Voyager, through its strategic partner US Bank, conducts credit reviews on all Voyager bunker buyers and assumes all the credit risk in every Voyager transaction. For suppliers, this eliminates the significant cost of credit checks, credit insurance and ongoing credit management.
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