Newsletter, January: What if monthly salaries became quarterly salaries?

Miika1 MODExtended payment periods are becoming a growing problem for companies. At present, it is not unusual for payment terms to be 60 days or more in Finland. SMEs’ working capital is often tied up for extended periods in the products and services they have sold. This is an obvious barrier for operations.

The following image will make the plight of companies easier to understand. Think about the way you manage your own personal household finances and how this would change if you started receiving your salary every three months instead of every month – and you found this out today. You would have to re-think your plans regarding your holidays, loan repayments and many other things.

OpusCapita has the solution to this problem, a new type of supply-chain financing.It is a financing arrangement that will help SMEs get hold of money quickly – within a few days if necessary. SMEs will be able to improve their liquidity and competitiveness by taking advantage of the financial position of their large corporate customers. Quickly returning these cash resources to the companies would allow them to make investments and increase their sales.

Supply-chain financing is also beneficial to the buying companies as it will allow them to manage their own supply-chain and ensure the availability of the products that they need while optimizing their working capital. The solution also offers a low-risk investment opportunity for banks.

“All parties will benefit from this new solution. Supply-chain financing is a good example of the kinds of measures that Finland now needs: positive solutions that improve companies’ operating conditions,” says Miikka Savolainen who is in charge of the supply-chain financing solution at OpusCapita.

OpusCapita’s supply-chain financing solution is in use in Finland since the start of the year. Initially, the system will include a major Finnish corporation and SMEs benefiting from the opportunity to receive their payments quickly.  

“Let’s just stick to monthly salaries in the future,” says Savolainen.

Further information:

Miikka Savolainen,