Supplier Financing

During the last few years, three innovative early payment and supplier financing solutions have been in the spotlight. All three solutions provide the option for suppliers/sellers to get paid early with different involvement or benefits from their buyers/customers. Based on your goals, you can select one or a combination of these solutions to optimize your supply chain.

Solutions

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Supply Chain Finance

Buying organization provides low-cost, third party financing to their suppliers based on their own credit rating

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Dynamic Discounting

Buyer uses its surplus cash to provide early payment financing to its suppliers

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Accounts Receivable Finance

Supplier can sell its receivables to optimize cash flow for more than one customer

Key Facts About Each Solution

Supply Chain Finance

  • Provides value for suppliers of all sizes and credit ratings
  • Buyer provides financing to supplier through third-party funders
  • True sale of the supplier’s receivables, not considered financial debt
  • Flexibility to involve multiple banks and non-banks for expanded liquidity, minimizing risk across the supply chain

Dynamic Discounting

  • Financing is provided by the buyer at different rates based on the terms requested by the supplier
  • By using its own cash to fund the buyer can improve its margins and profitability
  • Offers quick, on-demand funding at attractive rates

Accounts Receivable Finance

  • Flexible, allowing suppliers to sell receivables of many customers without recourse to third-party financial institutions
  • In most cases, there is no involvement or disclosure required to the supplier’s customers
  • Cross-border financing at highly attractive rates with up to 100 percent advanced payment of invoices