Solutions
A supplier who stops takes you with them
The engine reads your payables accounts — what share of your purchasing each supplier holds, whether there is an alternative, and how the relationship has behaved over time — then returns a score for every supplier with the reasons behind it.
Definition
What it is
Payables are what you owe your suppliers. The risk here is not that you cannot pay; it is that the party you depend on cannot continue. A supplier that stops halts a production line, a branch, or a whole contract, and the effect reaches your financial accounts weeks after the event rather than on the day of it.
The engine reads the financial accounts from that end: each supplier's share of your purchasing, whether a substitute exists, and how steady pricing, delivery and invoicing have been over time. Each supplier then gets a score that starts at 60 and moves with every reason, by exactly the arithmetic used at the other end of the financial accounts — the explanation is the calculation, not a comment sitting next to it.
Concentration is what turns a small matter into a large one. A supplier holding a meaningful share of your purchasing, with no ready alternative behind it, carries far more weight than its score alone suggests. So the engine shows the score and the concentration together; the two numbers do not read apart.
Mechanics
How it works
Who
The company
What
Connects its accounting system or uploads the payables and purchasing accounts
When
At the start of the subscription, then on every refresh
Who
The engine
What
Checks incoming invoices: the e-invoice stamp, the hash chain, and the same invoice recorded twice
When
Before any score is calculated
Who
The engine
What
Measures each supplier's share of purchasing and scores it from a starting 60, recording every reason that moved it
When
In the same run
Who
The company
What
Reads the score and its reasons, alongside the suppliers your purchasing is concentrated on
When
At any time, and on every refresh
The engine, step by step
A motion graphic of how the engine reads financial accounts
Six steps: the invoices arrive scattered with the account statement, the engine reads and orders all of them, and out come the ECL reports and the counterparties whose position is financially sound, alongside the regulatory standing and records, ending in analysis that supports your decision.
1/6Scattered invoices
Invoices from different customers arrive apart, with no clear picture of the financial accounts.
Step 1 of 6
An illustration. The counterparty names and figures here are examples we wrote to explain the reading, not the financial accounts of Fkah or of any client.
Who reads this assessment
Two readers, one output: a score explained reason by reason. What differs is the question each of them brought to the financial accounts.
Corporates
Know your risks: you get a risk rating on each of your suppliers, worked out on your own purchasing accounts. Beside it you read purchasing concentration, which is what turns a single name into an operational weak point. The reading supports your decision; it does not make it for you.
- A score per supplier, with the reasons that built it
- Each supplier's share of purchasing, and which of them has a substitute
- Duplicate invoices surfaced before they enter the approval cycle
- A history showing when a score moved, and on what reason
Financial institutions
Know your client's risk before financing: a financial institution subscribes to read what is in its own portfolio — the clients on its own financial accounts, and the purchasing accounts those clients have shared with it. The engine supplies the analysis a credit decision rests on — each supplier's score and reasons, purchasing concentration, and the invoices that failed a check — and the decision stays with your credit committee alone. The engine decides nothing and sets no limit; it shows you what you are deciding on.
- A reading of your portfolio, not of anyone else's financial accounts
- The analysis a decision rests on: score and reasons, concentration, invoice check results
- The decision stays yours; the engine decides nothing and sets no limit
- No third-party data compiled, and no assessments about anyone sold
Fit
Who it suits
- Companies whose operations rest on a narrow supplier base
- Companies with repeat purchasing and long-running supply contracts
- Procurement teams that review an approved-supplier list on a cycle
- Financial institutions reading a client's purchasing accounts inside their portfolio
Cost
What the subscription costs
An annual subscription, set by the size of the financial accounts, the number of users and the depth of the integration. It is the same subscription that covers the other end of the financial accounts if you take both.
An annual subscription. What moves it is the size of the financial accounts, the number of people using it, and how deep the integration with your accounting system goes. Fkah's plans and their details are published on the pricing page at launch.
The pricing pageQuestions about this assessment
What have payables got to do with credit risk?
Does it surface duplicate invoices?
What if a supplier is a small company with no long history?
Does the engine tell me what to do about a particular supplier?
Next step
Register your interest in this assessment
Registering commits you to nothing and creates no contractual relationship. We reply as soon as subscriptions open.
The other end of the financial accounts