PlusAdvance's Ethical Claim under UNI ISO/TS 17033 in support of dynamic discounting

The subject of ISO/TS 17033 is only claims that qualify as "ethical" as they contain references to the three dimensions of sustainable development: social justice, economic development, and environmental protection.

Claim validated by Bureau Veritas Italy

More information about ISO/TS 17033

The PlusAdvance program for the Supply Chain

The use of the claim in question by the company refers to the adoption of the sustainable dynamic discounting service devised and offered by PlusAdvance. Indeed, this demonstrates the company's commitment to pursuing the concepts of economic justice and financial sustainability in favor of the Supply Chain, as, thanks to PlusAdvance, the Client company makes itself available to its Suppliers to agree, from time to time and if necessary, on better payment terms and conditions than those already agreed upon.

Thanks to PlusAdvance, “Your Company Name” facilitates its supply chain in accessing liquidity, according to the PlusAdvance dynamic discounting program, so that suppliers can immediately improve payment conditions for their already approved invoices, reducing reliance on borrowing.

This promotes a path of economic sustainability for suppliers as it mitigates the risk of “business crises.”

The objectives of PlusAdvance's ethical claim

Thanks to PlusAdvance, the client company makes itself available to its suppliers to improve liquidity circulation in the supply chain. This way, suppliers can increase the liquidity generated by their business, reducing reliance on financial debt and becoming financially stronger, thereby averting business crises.

PlusAdvance can therefore be considered a means of implementing the Sustainable Development Goals for 2030 defined by the United Nations. Specifically, the platform falls under Goals 8, 9, and 10.

PlusAdvance protects all companies by providing the opportunity to access their liquidity in advance and at reduced costs, thus ensuring a financially healthier and more stable supply chain. This allows companies to invest their capital in new innovative projects, their human resources, and sustainable transition plans.

Decent work and economic growth

PlusAdvance strengthens companies within the supply chain by enabling them to access their liquidity more quickly and at reduced costs, thereby promoting sustainable, inclusive, and economic growth.

Businesses, innovation, and infrastructure

PlusAdvance strengthens the companies present in the supply chain, giving them access to their liquidity faster and at reduced costs, thus promoting long-lasting, inclusive and sustainable economic development.

Reduce the
Inequalities

PlusAdvance strengthens the companies present in the supply chain, giving them access to their liquidity faster and at reduced costs, thus promoting long-lasting, inclusive and sustainable economic development.

Beneficiaries of the ethical claim

The target to which the claim is addressed are companies that operate within important supply chain contexts in which the Client company, which is the Supply Chain Leader, ensures through PlusAdvance that suppliers are solid and do not have liquidity problems. This is with a view to ensuring stability to the supply chain itself, operational continuity and thus lowering the risk of default for all actors who work mainly as suppliers.

The supplier, as an interested party, needs to ensure the effectiveness of commercial negotiations, through access to liquidity, without which it would be forced to resort to borrowing from Financial Institutions.

PlusAdvance guarantees both the Client and the Suppliers that all negotiations made through the platform always meet the conditions set by both and that the percentage discount offered by the Supplier to renegotiate the invoice payment times never exceeds a maximum ceiling ethically set with the Client before starting negotiations.

Verification activities

Definitions

Dynamic discounting

Technological solution that allows suppliers to obtain, through an agreement with the client company, advance payments against a discount (truly dynamic because it is proportional to the time of advance payment and an invoice discount that varies from time to time by the supplier) on the nominal value of the invoice.

Working capital

It represents the amount of resources that make up and finance a company's operational activity and is an indicator used to verify the financial balance of the company in the short term.

Cash discount

Discount granted in the event that the customer, instead of benefiting from a deferral in the payment of the invoice, pays on delivery of the goods or in any case in advance of what was agreed.

Invoice Discount Rate

Discount granted in the event that the customer, instead of benefiting from a deferral in the payment of the invoice, pays on delivery of the goods or in any case in advance of what was agreed.

Annual rate

Normalized invoice discount rate over a period of 1 year (360 days).

Documents for verification

In order to verify the claim, the following data will be made available to the certification body. In any case, all data will be anonymized so that it is not possible to trace the identity of individual companies (both Customers and Suppliers) and aggregated and significant case studies will be presented for the verification of the claim.

  • Invoices made available by a customer for specific suppliers
  • Operating parameters set by the selected customer
  • Operating parameters set by one or more suppliers of the aforementioned customer
  • Results of trading operations against the set operating parameters

Claims and inquiries

The claim is valid for the entire period of time in which the company undertakes to keep PlusAdvance's dynamic discounting service active. However, PlusAdvance undertakes every two years, starting in 2023, to verify and update the rules of the claim based on the sustainability context and the future implications connected to it.

For any doubts, an email address has been set up dedicated to anyone who wants to receive more information on the claim and is as follows: claimetico17033@plusadvance.com.

For more information on the ethical claim, write to us at the email address
claimetico17033@plusadvance.com

or

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