Supply Chain Finance

As global supply chains stretch across the globe with multinational buyers on one side and a diverse group of suppliers in numerous countries on the other, corporations are under pressure to unlock the working capital trapped in their supply chains. Supply chain finance, also known as supplier finance or reverse factoring, is a set of solutions that optimizes cash flow by allowing businesses to lengthen their payment terms to their suppliers while providing the option for their large and SMB suppliers to get paid early. This results in a win-win situation for the buyer and supplier. The buyer optimizes working capital, and the supplier generates additional operating cash flow, thus minimizing risk across the supply chain.

• The supplier sends their invoices to the buyer using the current policy and methodology.
• The buyer approves the invoices and uploads the approved invoice data (its payables as well as any applicable payment offsets such as credit/debit memos) to our platform.
• At any time, the supplier is able to log on the supply chain finance platform via web browser to see all the approved invoices. The supplier may do nothing and funds will settle directly in the supplier’s bank account on the original maturity date, or the supplier may sell or ‘trade’ his receivables to a funder on our platform in return for advance payment.
• If traded before maturity, 100 percent of the invoice—less a small financing fee or discount—is transferred electronically to the supplier’s bank account. In most cases, the supplier is paid on the next business day. Since funds from the financial institution are advanced based on the buyer’s promise to pay on the original maturity date, financing rates are based only on the buyer’s risk, not the supplier’s. Therefore, financing rates are very attractive—about 10 times lower than factoring or other traditional financing solutions.
• At maturity, the buyer pays the full invoice amount to the supplier or respective funder on our platform.