Sourcing Connections and Zelo partner to embed invoice financing in procurement
UAE-based procurement consultancy firm Sourcing Connections has inked a new partnership with fintech company Zelo.
Through this partnership, Sourcing Connections and Zelo will support small and medium enterprises (SMEs) in the Gulf region with improving their financials (receivables and cash flow) and support large organisations to develop structured supplier management programmes that integrate digital supply chain finance solutions.
Operating out of Dubai, Sourcing Connections is a procurement consultancy supporting clients in modernising and transforming their procurement function, with additional capabilities in working capital and cash flow enabled through strategic partnerships.
Abu Dhabi-based Zelo meanwhile is a fintech that provides invoice financing solutions to small and medium-sized enterprises. With Zelo, companies can bring forward their payments from clients from 30, 60, or 90 days to instant payout, which enhances working capital and cash flow. Zelo also helps SMEs access bank guarantees with lower cash margin requirements.
According to Mark Fadel, Managing Director of Sourcing Connections, Zelo’s offering addresses one of the major pain points for doing business in the GCC, in particular in the SME segment. In some sectors, payment terms of 90 days (or more) have become the norm, meaning SMEs must cover expenses before receiving payment. This puts pressure on their working capital, lifts financial risks, and curbs growth-focused investments.
SMEs that implement invoice financing and integrate it within their procurement processes can overcome this challenge, at a relatively low cost (Zelo for instance charges up to 2% of the invoice amount).
“Companies that proactively address supplier cashflow pressures not only improve ecosystem liquidity, but also reinforce their competitiveness and long-term resilience,” noted Fadel.
“This partnership enables us to actively deliver a practical, scalable solution for our clients. By combining our procurement and supply chain expertise with Zelo’s solutions, we can help organisations design supplier management programmes that unlock liquidity, strengthen supplier relationships, and enhance the attractiveness of doing business with them.”
Dhanush Arjun, CEO of Zelo, added: “Supply chains don’t operate in silos – and neither should finance. Together with Sourcing Connections, we are aligning procurement strategy and embedded finance to create solutions that balance the needs of suppliers, corporates, and financial institutions in a single, cohesive framework.”
