Supply chain finance, also known as supplier finance or reverse factoring, is a financing solution in which suppliers can receive early payment on their invoices. Supply chain finance reduces the risk of supply chain disruption and enables both buyers and suppliers to optimize their working capital.
Unlike other receivables finance techniques like factoring, supply chain finance is set up by the buyer instead of by the supplier. Another key difference is that suppliers can access supply chain finance at a funding cost based on the buyer’s credit rating, rather than their own. As a result, suppliers can typically receive supply chain finance at a lower cost than other financing methods.
It’s time to focus back on what your business does best, without worrying about cash flow.
Our working capital solutions for the raw materials industry can help by unlocking the opportunities in your supply chain.