ZIP

Supplier Financing

Supplier Financing ensures the suppliers to receive the cash out of their receivables at a maturity previously set by them and thus getting rid of any liquidity trouble. On the other hand, the corporate and large-scale buyers purchasing goods from suppliers enjoy flexible payment terms and maintain uninterrupted supply of goods through efficient purchase method.

Advantages of Supplier Financing for the suppliers:

  • Collection in advance of the maturity date
  • Regular cash flow
  • Guaranteed payment and collection
  • Stronger relationship with the buyer
  • Competitive advantage to be enjoyed in purchases in cash thanks to early collection
  • Relatively lower financing costs given the creditworthiness of the buyer
  • Financing based on the payment solvency and assignment of receivables

Advantages of Supplier Financing for the buyers:

  • Flexible payment terms
  • Stronger relationship with the suppliers
  • Efficiency in terms of enterprise capital and balance sheet management
  • Process efficiency to reduce the supply chain management cost
  • Ability to negotiate payment and pricing terms with the supplier
  • Uninterrupted payment process for strategic suppliers