Supply Chain Finance
Pay your invoices later but keep your suppliers happy!
Impossible? No - supply chain finance is a unique financing product which allows you to do just that. If your business needs to conserve working capital (to finance growth or carry you through a difficult trading period) you should consider introducing finance into your supply chain. This means you can keep your cash for longer but your suppliers will still be paid on time - perhaps even earlier than usual.
Buyers and suppliers in any supply chain often arm-wrestle about payment and credit terms. The buyer wants to pay as late as possible, and the supplier wants to be paid as early as possible. Both try to keep as much cash as possible for as long as possible in its own business.
The stronger business normally wins, leaving the smaller one exposed to cash flow problems. This creates weak links in the supply chain, which ironically may come back to haunt the stronger business one day when it has to go out and look for a new buyer or supplier after its old "partner" has gone belly-up.
Supply chain finance (sometimes called "reverse factoring") resolves this problem by injecting cash flow into the supply chain at critical points between buyers and suppliers, giving both of them some breathing space.
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