Getting Started with FinverityOS
1. Introduction
Welcome to FinverityOS! As a new owner and user of the platform, we understand the beginning can be overwhelming. For this reason, we have created this quick starter user manual designed to acquaint you with FinverityOS platform as a whole, from multiple user points of view. We will guide you through the key concepts of the platform structure and the various steps involved in successfully configuring settings and processing your first transaction on the platform.
1.1 Portals
FinverityOS platform is composed of two main types of portals – the Admin Portal and the Customer Portal. Depending on the type of the user, you will be able to access both or only one portal.
1.2 Personas
The system has a concept of 5 personas – 1) Admin User, 2) Fund Manager (Fund Manager and Funder Modes), 3) Funder, 4) Seller and 5) Payer. Within each persona different roles and permissions can be set to reflect the possibility of teams allocating different tasks within the team or organisation with the exception for the Admin user, where only full rights or view-only access is available. A short description of each role involved can be read here.
1.3 Products
FinverityOS supports the following types of SCF products (financing techniques):
Payables Finance, also known as Reverse Factoring (True Sale)
Payables Extension (Prepayment)
Select Receivables Discounting, also known as Invoice Discounting (True Sale - AR Finance)
Distributor Finance (True Sale/Prepayment)
1.4 Structures
The Platform currently support 2 different types of legal arrangements which dictate the specific workflows that the system will follow. More information on the distinctions between the two arrangements can be found here.
True Sale/ Accounts Receivables Finance refers to an arrangement between Funder and Seller where former purchases outstanding invoice(s) from the seller for a discount and collects receivables on their maturity from the Buyer. Under AR Finance Buyer is not part of the arrangement, therefore Funder collects financing repayment directly from the Seller.
Prepayment finance, refers to arrangement between Funder and Payer, where former pays outstanding invoice on due date to the seller and extends payables date for the Buyer (Payer) for a fee.
The Platform currently supports 4 different types of Limits. Read more here about limits and how to configure them depending on your role and the type of limit. Limit set based on the Payer
Limit set based on the Seller
Limits set based on Investment strategy
Limits set based on wallet limit (Currency limit)
Platform currently supports 2 different interest calculation methods. More information on the distinction between the two interest calculations can be found here.
Straight discounting/Fees
Present value discounting/Fess
It is important to note that system accommodates early repayment by the buyers under prepayment structure which in turn frees up their facility limit for more invoices to be funded. If selected by the Funder, financing fees can be recalculated to reflect actual tenor and fees due adjusted. More info can be found here.
2. Onboarding and Workflow Customisation
Once you are familiar with the key concepts of FinverityOS platform, it's time to onboard parties involved in the transaction, customise transaction workflows and invite your colleagues onto the platform to help you to process your first transaction.
2.1 Onboarding an entity and establishing relationships
Parties participating in trading and financing relationships are onboarded and maintained by the admin user in the Admin Portal. On the home page of the admin portal, under Companies tab you will see a creation button for each of the parties that you can add onto the platform.
To create a Funder please follow steps outlined here and similarly requires entity to be activated before any funds can be deployed and invoices financed.
2.2 Relationships
For the parties to be connected on the platform and transaction workflows to apply, following relationship needs to be created:
2.3 Strategies
For the invoices to be funded, Payer has to be part of Fund Manager's/Funders strategy. Once you, you as the Admin user have set up funding relationship between Payer and Fund Manager/Funder next step is to create an investment strategy. Additionally, more information on investment strategy setting configuration can be found here.
2.4 Workflow Customisation
Fund Manager/Funder is able to set up maker checker including 4 eye concept covering risk checks and approvals. If maker check is set, then invoices submitted to the system must pass confirmation checks. This flow is customisable, more information can be found here.
2.5 User Management
Each main persona is able to create roles, add users, and assign roles within their organisation. When creating roles, the main user is able to define what permissions each role has, in turn permissions define which actions this role can perform on the customer portal.
3. Processing a transaction
Once you have onboarded all the parties involved in admin portal and established relationships between each, you are ready to initiate your transaction.
3.1 Upload an invoice
System unless specified otherwise allows all parties to upload invoices. Configurations can be achieved through admin portal where seller can be prevented from uploading invoices or Fund Manager in customer portal is able to define uploading party(ies) for invoices and other documents. For example, assuming Seller is the uploading party under True Sale facility, the following article here outlines step by step on how to upload a single or multiple invoices including associated documentation. Alternately, in Prepayment arrangement, the Payer uploads an invoice, the following article here outlines step by step on how to upload single or multiple invoices and their supporting documents.
3.2 Confirm an invoice
Once an invoice is uploaded and submitted, provided transaction workflow has not been customised, the default workflows are followed which are detailed here. If facility is true sale and invoice has been submitted by the seller, as the first approval step will be for the Payer to approve the invoice and thereafter the invoice joins Fund Manager's Checker and Risk Maker/Checker approval queue, more details can be found here. If the facility is AR Finance, the Payer’s approval is skipped.
Whether the Payer is involved or not, the Fund Manager still makes the approvals for all or the remaining stages of the workflow. More details on this process here.
3.3 Sell an Invoice
As the invoice completes all the approvals as per the workflow settings, seller is able then to sell this invoice to the Fund Manager at a discount. More information on steps involved in selling an invoice can be found here.
3.4. Purchase an invoice
As a default, the system purchases fully approved invoices upon designated funding window, as a result the admin user receives a payment instruction file which allows the user to initiate a payment to the seller outside the Finverity platform to be initiated.
3.5 Repayment
At the due date the payer generates the repayment reference and initiates actual payment to the Fund Manager outside the FinverityOS platform to settle outstanding invoices.
3.6 Reconciling
Reconciliation between payments received and outstanding invoices are completed in the Admin Portal by the admin user, more information on steps involved you can find here
4. Conclusion
For a comprehensive understanding of our product's functions and features, we encourage you to explore our product's library Knowledge Base. It contains detailed information and documentation that can provide valuable insights into the capabilities of our product.
Moreover, we are continuously enhancing our product to surpass industry standards and exceed customer expectations, with regular updates scheduled to occur. Stay informed about the most recent updates by referring to our Changelog posts each time a new version is rolled out.