PrimeRevenue Spotlights Supply Chain Finance in GM, Chrysler Restructuring Plans

Company uniquely positioned to spearhead effort to provide supplier financing, meet short timeframes and achieve Government objectives on transparency and accountability

ATLANTA, GA, February 24, 2009 – PrimeRevenue’s Supply Chain Finance (SCF) proposal to provide financial assistance to US automotive suppliers won key nods last week as General Motors and Chrysler (the OEMs) each independently proposed a supply chain financing or ‘quick pay’ solution among their recommendations to address the imminent cash flow requirements of the US automotive supply base. Supply Chain Finance was the only supplier assistance option proposed by both GM and Chrysler.

In its restructuring plan, General Motors proposed that “the Government would agree to guarantee OEM receivables up to a certain limit, the OEMs would select participating credit insurance providers, or supply chain financing providers, based on a competitive process, and suppliers would enroll in the program as they deem necessary”.  Similarly, among its recommendations Chrysler called for a “quick pay” program to provide financial assistance to suppliers.

A Supply Chain Finance program for the US auto industry would operate in much the same way as traditional SCF programs.  The OEMs would upload their payables to PrimeRevenue’s SCF platform where suppliers would view them and, at their option, sell them to participating banks in order to receive early payment.  Due to current market conditions, banks are unwilling to purchase OEM payables, therefore, under PrimeRevenue’s proposal the Government would guarantee them.  This enables banks to fund supplier early payment requests at extremely attractive rates based on Government credit risk without adding debt to supplier balance sheets.  Suppliers could further improve their cash flow by participating in SCF programs operated by their other clients who carry investment grade credit ratings.

“Supply chain finance is a quick and powerful way to inject low cost liquidity into the US automotive supply chain” said Joe Juliano, CEO, PrimeRevenue.  “We join GM, Chrysler and their suppliers in calling for rapid adoption of a supplier assistance package to meet the severe cash crunch suppliers will face as early as March 1st.  Since we currently deliver SCF solutions elsewhere in the auto industry, PrimeRevenue is uniquely positioned to deliver quickly, and we look forward to doing so.”

A summary of PrimeRevenue’s proposal to GM, Chrysler, the US Treasury and suppliers may be accessed at http://www.primerevenue.com/auto.

About PrimeRevenue, Inc.
PrimeRevenue's leading global Supply Chain Finance (SCF) platform and solutions enable dramatic new working capital efficiencies for the benefit of buyers and their suppliers.  PrimeRevenue achieves this through the delivery of secure, robust, industry-leading Software as a Service (SaaS) technology, a global community of the world’s most innovative financial institutions and partners, and flexible working capital solutions and advice.  Bank Technology News named PrimeRevenue as a “Top 20 innovation in the past 20 years” Companies are relying on SCF deployments powered by PrimeRevenue to optimize working capital, remove risk from their supply chain, and forge stronger trading partner relationships.  Headquartered in Atlanta, Georgia, PrimeRevenue has offices and customers throughout the world.  For more information visit www.primerevenue.com.

MEDIA CONTACTS:
Bob Kramer
+1 (678) 904-7103
PrimeRevenue
pr@primerevenue.com

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