STIMULATE THE ECONOMY

Targeted Stimulus Program to Effectively Bring Relief to Desperately Needed SMEs in Times of Covid-19

At Tallyx, we understand the difficulties many companies are going through, in this unprecedented time. Moving swiftly, we enhanced Tallyx’s Early Payment to formulate
Stimulus Earlypay & Draft Accelerator (SEDA)
which supports Central Banks, Economic Support Funds and Banks in injecting deep tier liquidity to ensure supply chains remain functional in times of economic crisis

EVERYONE BENEFITS

Significant Upsides, with a Domino-like Effect

Stimulus funds can be provided through Anchor’s Early Payment program, in the form or cash or digital draft, ensuring all players in a given supply chain can benefit. 

Stabilizing

Economy

SEDA works by targeting specific industries and injecting relief funds effectively through anchors deep into their supply chain, reaching the many SMEs desperately seeking help and thereby averting the economy from sinking into a depression. 

Transparency,

Low Overhead

SEDA requires minimal administration overhead while offering greater transparency into the use of funds, which is critical for the success of any stimulus program while ensuring accountability to the overall supply chain.

Speed, Efficiency in

Stimulus Program

Tallyx’s Lite Touch Onboarding of deep tier suppliers is a quick simple onboarding process, in comparison to thelimiting traditional bank-hosted SCF programs, due to onboarding bottlenecks stemming from compliance requirements. 

Features

SEDA is an extension to Tallyx’s Early Payment Plus, with the following added features:

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Extended

DPO

Extend anchor buyer’s DPO to 180 days

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Early

Payment

Alternatively use government-funded SEDA account to fund early payment in lieu of buyer’s own cash.

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Central Bank

Digital Draft

Instead of using CAPD (Commercial Approved Payable Draft) which is backed by Anchor’s reputation, Central Bank Digital Draft (CBDD) is used, which is backed by Central Bank’s credibility.

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Modern

Technology

Easy onboarding and account setup. Funders get access to a much larger pool of fundable assets through better packaging of trade assets and their associated risk that can be afforded by adopting blockchain tokenization and Artificial Intelligence technology.

How it Works

  • Early Payment - SEDA
  • Central Bank Digital Draft

Early Payment Funded by Government Relief Funds

Anchor Uploads Approved Payables

Perform eligibility check, extend maturity date
(per SEDA Policy)

Supplier Submits Early Payment Request

Discounting Rate per SEDA Policy

Auto-Accept Based on SEDA Policy

Anchor arranges Early Payment using SEDA-backed account, based on info from auto-generated AEP File

Anchor’s Repayment to SEDA account

Remind Anchor to pay down O/S balance of SEDA account at extended maturity dates

Central Bank Digital Draft (CBDD) is a sovereign guarantee by the government to pay the invoices underlying the draft holder on due date.

Anchor Uploads Approved Payables

Perform eligibility check, extend maturity date
(per SEDA Policy)

Supplier Requests CBDD

If approved, Supplier is notified of CBDD issuance in Tallyx Wallet

Supplier’s Options with CBDD

Request discounting of CBDD, use as payment to upstream suppliers, or wait for maturity payment

Anchor’s Repayment to SEDA Account

Remind Anchor to pay down O/S balance of SEDA account at extended maturity dates

FAQ

Corporate coronavirus bailouts are usually key parts of stimulus programs. Lessons learned from corporate bailouts during the financial tsunami of 2008 reminds us that they should come with significant controls to ensure proper and effective use of government relief funds. Transparency in the use of funds is critical for the success of any stimulus program. A stimulus program targeting anchor corporates and their deep supply chains will be most effective since injecting liquidity into SMEs will help to stimulate the economy, preserve jobs and keep essential services running. 
In times of economic downturn, growth is halted and access to liquidity becomes limited. However, with a properly structured SCF program like SEDA, backed by funding from Central Banks, every party stands to benefit from SEDA’s collaborative and holistic approach. Buyers get extended payment terms, suppliers (including deep tier) get access to liquidity, and Central Banks have transparent oversight into how their relief funds are being used. 
 
Speed in implementing such stimulus program is also a critical concern, as COVID-19 rapidly spreads around the globe. Traditional bank-hosted SCF programs have many limitations, due to supplier onboarding bottleneck and various compliance requirements, that seriously limit the reach and effectiveness of stimulus programs. We strongly believe in a corporate early payment program backed by government relief fund to be the most effective approach, requiring minimum administration overhead while offering greater transparency at the same time.    
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