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