Finance is available to finance your full supply chain. Using financing and risk mitigation techniques to optimise the management of working capital and liquidity in the supply chain. Receivables financing and funding is made available to suppliers based on your creditworthiness and financial strength.
FINANCING IS AVAILABLE FOR ALL THE PERIODS ABOVE
Paying Your Suppliers
In combination with discounting your receivables, Funders can help you import/purchase additional pre-sold product from your vendors, via letter of credit or documentary sales terms. These arrangements are a particularly good fit for very high-growth or seasonal businesses.
For clients dealing in goods that have a large and “liquid” market and holding goods in reputable third party warehouses, funders can arrange financing against the standing inventory. This inventory financing is typically arranged with conditions on the advance rate and tenor of funding, and must include sound backup liquidation planning.
For firms with solid financials and strong annual revenues, vendor finance programs (also known as “reverse factoring” or “payables financing”) can be arranged. Often structured with “off-balance sheet” treatment, these arrangements can be a true “win-win”—offering our businesses vendors greater liquidity at a lower interest cost while allowing our the buyer longer payment terms.
These funding programs allow you to optimise your working capital by providing solutions to you and your upstream and downstream partners. For instance, you can extend your payment terms and avoid discrepancies and fees associated with letters of credit and your suppliers benefit from an on-demand pool of liquidity, lower borrowing costs, faster funding, and a higher advance rate.