SAP Supplier Financing: Frequently Asked Questions
Launching in Q3 2021, SAP Supplier Financing is a self-service solution for small to medium sized suppliers on Ariba Network. It matches suppliers with financial institutions that meet their short-term working capital needs. The solution leverages the transactional data a supplier has on Ariba Network and uses that for pre-qualification by financial institutions. SAP Supplier Financing can be accessed from the supplier portal and is currently available to companies in the United States only.
Q: What are the advantages of using SAP Supplier Financing, compared to traditional methods of obtaining financing?
A: SAP Supplier Financing is 100% digital and leverages the vast amounts of data on Ariba Network to provide funding options for suppliers. This results in the following benefits:
100% Digital: Suppliers save significant time and resources with the onboarding and funding processes 100% digitized
Flexible Working Capital: A financial partner that offers working capital finance solutions at flexible terms and competitive rates
Instant pre-qualification: Suppliers are pre-qualified instantly based on their digital footprint on Ariba Network without impact to their credit scores
Q: How are SAP Supplier Financing and Ariba Network related?
A: SAP Supplier Financing is a value-added service for suppliers who conduct e-commerce using Ariba Network. It’s a self-service feature of Ariba Network that, as an eligible supplier, is enabled without impacting their existing relationship with Ariba Network or their customers.
Q: What costs are associated with the program?
A: SAP Ariba does not charge suppliers or buyers any fees specific to SAP Supplier Financing. It is an out of the box solution meaning there is no additional technology or integration requirements for either the suppliers or buyers. Suppliers pay a finance fee to the financing provider.
Q: Does the supplier have to inform or request their buyer to use this feature?
A: No. This is a self-service solution for suppliers. The arrangement is between the supplier and the financial partner. Neither the supplier’s buyer nor SAP are involved in the relationship with the financial partner.
Q: Do pre-qualified offers impact the supplier’s credit score?
A: No, getting pre-qualified offers doesn’t impact suppliers credit score. As per terms agreed with SAP Supplier Financing, financial partners are not permitted to perform checks or searches that can impact a supplier’s credit score. Financial partners can perform soft credit checks or searches, but these don’t impact the credit score.
Q: Is this service available outside of Ariba Network?
A: No, SAP Supplier Financing is only accessible via the supplier portal.
Q: Are there any legal requirements to use this service?
Q: What if the supplier hasn’t used Ariba Network to invoice in the past year?
A: SAP Supplier Financing is currently available only to active suppliers in the U.S. region who have transacted business and invoiced through Ariba Network in the last 12 months.
Q: Do suppliers have to disclose their bank account details to Ariba Network?
A: No, the Supplier’s bank account details remain stored in the Buyer’s vendor master and if contracted for financing with the financing partner.
Q: Could this impact a supplier’s relationship with their buyer customers?
A: No. This is a supplier-centric solution that does not involve the buyer. They will continue to transact with their buyer using the standard Ariba Network functionality of receiving POs and raising invoices. In some cases, they may be required to notify the buyer of a change of bank account, if advised by the financial partner.
Learn more about SAP Supplier Financing in this short video