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Supply@ME Capital
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== Which are the main competitors of the product? == A key way to determine an offering’s closest competitors is by looking at other offerings that are targeting the same or similar target audience (i.e. early-stage inventory-intensive businesses) and providing or aiming to provide the same core benefit (i.e. more/maximum business profits, in particular more efficient financing), and then ranking the offerings in terms of the total amount of time spent using and/or money spent purchasing the offerings. With that said, we view that the closest competitors of the Supply@ME platform are TraxPay, Demica and Novuna. A detailed comparison between Supply@ME and its main competitors are shown in the table below. {| class="wikitable" |+Competition analysis ! !Supply@ME !TraxPay !Demica !Novuna !Marco Polo Network !Kyriba !Taulia !Orbian !PrimeRevenue !LiquidX 360 !TradeShift !HSBC business loan |- |Is the product targeted toward early-stage, inventory-intensive companies? | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes |- |Is the platform focused on providing financing (i.e. finance platform)? | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes |- |Does the product provide financing related to inventory (i.e. inventory-related financing)? | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes | style="background: green; color: white;" |Yes |- |Does the platform truly sell the inventory (i.e. true sale inventory finance platform)? | style="background: green; color: white;" |Yes | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: green; color: white;" |Yes | style="background: red; color: white;" |No | style="background: red; color: white;" |No |- |Is the platform compliant with Sharia law (i.e. Sharia-compliant inventory finance platform)? | style="background: green; color: white;" |Yes | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: red; color: white;" |No | style="background: green; color: white;" |Yes | style="background: red; color: white;" |No | style="background: red; color: white;" |No |- |What is the average total price of financing inventory using the platform (i.e. inventory finance price)? | style="background: red; color: white;" |High | style="background: orange; color: white;" |Medium | style="background: orange; color: white;" |Medium | style="background: orange; color: white;" |Medium | style="background: orange; color: white;" |Medium | style="background: orange; color: white;" |Medium | style="background: orange; color: white;" |Medium | style="background: orange; color: white;" |Medium | style="background: orange; color: white;" |Medium | style="background: red; color: white;" |High | style="background: orange; color: white;" |Medium | style="background: green; color: white;" |Low |} === Finance price/cost === With inventory financing, the default liability is restricted to the company’s inventory only, rather than to the whole business. As a result, the risk to the financier is higher than traditional financing (i.e. business loans), and, therefore, the finance price/cost is higher (than traditional financing). Furthermore, with equity financing, there is no legal obligation to return the finance<ref>It's expected that the finance will be returned (with a profit), but there's no legal obligation to do so.</ref>. Consequently, the risk to the financier is higher than debt financing, and, therefore, the finance price/cost is higher (than debt financing). With the finance arrangement provided by Supply@ME Capital, the finance comes from the selling [and then at a later stage (e.g. 90 days), buying-back, at a higher price (than the sold price)] of inventory<ref name=":8">With the buyer having no obligation to sell back the inventory and the seller having no obligation to buy back the inventory, the arrangement here is different to a traditional inventory repurchase arrangement, where there is an obligation to sell-back/buy-back the inventory. If the buyer chooses not to sell back the inventory, then the original seller will need to buy the same inventory from another entity; similarly, if the seller chooses not to buy back the inventory, then the original buyer will need to sell the inventory to another entity (or hold onto it). We understand that while there is no obligation for the original buyer to sell back the inventory, the buyer is incentivised to sell back the inventory, because of a more attractive price (than if the buyer was to sell the inventory to another party) or to not sell it at all; similarly, the original seller is incentivised, because it will be logistically very expensive to replace inventory that has also be used (in the production of a final product).</ref>, and, therefore, the arrangement is more like an equity financing arrangement (rather than loan/debt financing arrangement). Accordingly, we expect the cost/price of the financing (that is provided by Supply@ME Capital) to be higher than both traditional financing and non-traditional financing [i.e. (on-balance sheet) inventory repurchase (repo) agreement<ref>An inventory repurchase agreement, also known as a inventory repo, inventory RP, or inventory sale and repurchase agreement, is a form of short-term borrowing. The dealer sells inventory to investors and, by agreement between the two parties, buys it back shortly afterwards (e.g. 60 days), at a slightly higher price.</ref>], thereby making the Supply@ME Capital financing one of the more/most expensive forms of financing.
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