The program aims to help mainly Micro and Small Enterprises (MSEs) in drawee risk operations
Suzano has partnered with the fintech Monkey Exchange, the largest receivables marketplace in Latin America, to help suppliers gain access to more competitive credit terms in drawee risk operations. The project is part of the program called Suzano Fortalece (Suzano Strengthens), an initiative intended to strengthen the company's entire supply chain, allowing suppliers to take advantage of Suzano's credit quality in negotiations with banks via the fintech's digital platform.
The drawee risk operation is a simple way to obtain financial resources: it consists in the factoring, by suppliers, of receivables, in which the bank advances payment of invoices on the request date, at a rate associated with the client company's credit risk. Through a partnership established between Suzano and Monkey, suppliers will have access to an intuitive platform that will allow them to easily and efficiently carry out these factoring operations with the benefit of Suzano's risk rate. In a format similar to a reverse credit auction, the bank that bids the lowest interest rate wins. In this way, borrowers tend to get more attractive terms than their current ones.
“Since the beginning of the pandemic, we have intensified our internal work to seek solutions to help improve the working capital of our partners, especially those who are more financially dependent on Suzano. Last year, we advanced payments and now we are going to work with Monkey so that our partners can have access to lower interest rates in order to foster financial sustainability in the supply chain and share value with these stakeholders,” explains Julio Ramundo, Suzano's Treasury Director.
In the first phase of the project, a total of 451 MSEs had the opportunity to access the Suzano Fortalece program. This number will be gradually increased based on risk assessments.
“Our goal is to support our partners by offering a differentiated support to micro and small suppliers, thus increasing the soundness of the supply chain and, based on the quality of our credit with banks, we can create and share value,” adds Viviane Danemberg, Executive Procurement Manager at Suzano.
Since its foundation, Monkey has transacted nearly R$15 billion and expects to end 2021 with a volume transacted between R$20 billion and R$25 billion. “We want to steadily create new solutions to innovate the market as a whole. Historically, card factoring products were highly concentrated on large acquirers, but with our solutions we want to include new financial agents and give more access to this market,” explains Rebeca Ouro Preto, Head of Sales at Monkey.
Monkey wants to empower micro and small enterprises through more competitive rates and a greater supply in the flow of receipts. The partnership with Suzano has the potential to advance receivables from R$300 million to R$400 million per month, but the idea is to increasingly grow this base.
About Monkey Exchange
The largest receivables marketplace in Latin America, Monkey Exchange was created in 2016 by Gustavo Muller (CEO), Bruno Oliveira (COO), and Felipe Adorno (CTO). Its investors are Wayra, the open innovation hub of the Telefónica/Vivo group and angels. The startup works in the areas of process control, reverse auction with advantages, functional white label, and supply chain finance, and has more than 55 major companies as clients, including Fiat Chrysler, Gerdau, Saint-Gobain, GRSA, and Usiminas. To learn more, visit: www.monkey.exchange