Santander and Pemberton Launch Supply Chain Solution Invensa

Santander has teamed with Pemberton Asset Management on a new supply chain solution.

The banking giant and the private credit manager have formed Invensa, a company focused on supply chain inventory solutions for larger and mid-sized corporations, according to a Tuesday (Dec. 3) press release.

“In the wake of growing supply chain disruptions in recent years, triggered by events such as the pandemic, geopolitical tensions and a changing macroeconomic environment, companies of all sizes are increasingly focused on ensuring greater resiliency in the supply of key goods and raw materials,” Santander said in the release.

Invensa, the release added, will employ Santander’s trade finance expertise and Pemberton’s non-bank working capital background to “support the shift from ‘just-in-time’ to ‘just-in-case’ supply chain models,” allowing for large-scale “operationally efficient, flexible inventory financing and management.”

Jose M. Linares, global head of Santander CIB, said the launch is part of the bank’s efforts to provide clients with a range of working capital solutions.

“We have been facilitating third-party leading inventory finance solutions to our clients for more than 10 years and this partnership with Pemberton enables us to serve our clients as a long-term partner and deliver an increasingly business-critical solution,” he said.

The launch comes as many corporations find access to working capital a challenge, as shown in recent PYMNTS Intelligence research into “growth corporates” (companies with annual top lines of between $50 million to $1 billion).

“Tapping into external financing is critical for these firms as they confront the daily challenges of running a business, executing long-term strategies, dealing with unplanned events and seizing expansion opportunities,” PYMNTS wrote last month.

The latest edition of the PYMNTS Intelligence “Growth Corporates Working Capital Index,” commissioned by Visa, found that companies that leverage external financing are twice as likely to see improvements in working capital ratios and cash conversion cycles.

Added funding like credit lines or loans helps bolster the cash that’s already available in the corporate bank accounts. The research found that the top 20% of performers enjoyed 51% shortened cash conversion cycles and 28% shorter days payable outstanding (DPO) than growth corporates in the bottom 20% of index scores.

“The bottom line impact has been palpable, as the top performers reported saving an average of $11 million in interest, inventory carrying costs and supplier discounts,” that report said.

“The benefits are keenly felt across supply chains, as more than 70% of companies using working capital solutions said that buyer/supplier dynamics improved as a result, and more than two-thirds said that they were able to meet end-market demand and opportunities for growth.”