Silicon Valley working capital FinTech Taulia is partnering with J.P. Morgan to develop a new trade finance solution that will give businesses liquidity to strengthen their supply chain.
“We’re always looking for impactful ways to enhance the client experience within wholesale payments,” Takis Georgakopoulos, global head of wholesale payments with J.P. Morgan, said in a statement on Monday (April 27).
The alliance with Taulia gives the bank a greater ability to help clients long term by “allowing them to inject and redeploy liquidity to their suppliers,” he said. This helps guarantee continued operations “during this challenging time.”
J.P. Morgan’s clients will gain the ability to onboard suppliers of all sizes anywhere in the world and unlock working capital caught in their supply chains. Businesses will also have the flexibility to go back and forth between bank-funded and self-funded early payments, giving them additional control over their money.
“We’re eager for clients to begin using the combined offering, as it brings together our depth of resources, expertise, strategic vision and vast client relationships, accelerating growth and innovation within the trade finance industry,” said Stuart Roberts, global head of trade, J.P. Morgan.
The strategic alliance between the two firms has been developing for months and comes at a time when supply chains worldwide have been crippled by the pandemic, according to a Bloomberg report.
Over the course of a year, companies can have $20 trillion tied up in supply chains, Cedric Bru, Taulia chief executive officer, told Bloomberg.
“Being able to leverage the strength of a large, investment-grade buyer for a small supplier went from an attractive financing option to a lifeline,” said James Fraser, JPMorgan’s global head of structured solutions within global trade.
Earlier this month Taulia rolled out its Rapid Start Invoicing offering. The technology can be implemented within seven days and gives businesses the ability to offer suppliers a way to electronically submit invoices.
