What is supply chain finance?
This is a short-term finance solution designed to keep an international supply chain moving at optimum speed. This is achieved by allowing suppliers to be paid quickly, and buyers to lengthen their payment terms. You may also hear this called supplier finance, receivables finance, or reverse factoring.
The focus with a supply chain finance arrangement is to build trust in global trade relationships. A supplier issues an invoice, then a third party steps in to pay immediately. The buyer settles the invoice with the third party later, meaning that the speed and creditworthiness of the third party are used to keep things flowing smoothly.
Who is supply chain finance suitable for?
Businesses who operate largely overseas are best suited to supply chain finance, as it helps to minimise the risk involved in such transactions. This type of finance is mutually beneficial: buyers stand to benefit from the ability to extend their payment terms without impacting the supplier, while the supplier receives payment instantly. This boosts relationship strength and facilitates growth for both parties.
If you are looking for help to fulfil large international orders, supply chain finance could be for you. Because you are borrowing against accounts receivable we are able to look past less-than-ideal trading histories. This also opens up supply chain finance to newer companies who cannot demonstrate years of accounts. As an Access Commercial Finance customer you also stand to enjoy:
No hidden fees or early repayment fees
Fixed interest rates
Applications considered from any industry
Money for any purpose
A slick application process