Supply Chain Finance | My Working Capital

My Working Capital

Supply chain finance

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Supply Chain Finance Lets You Pay Your Suppliers Before You Get Paid

What difference could it make to your business if you had a dependable and reliable source of working capital to turn on and off like a tap?

Surely, it would bullet proof your operations.

Many of our clients use Supply Chain Finance as an integral part of their growth plans – it’s the oil that lubricates their supply chains, keeps them moving and helps to generate more revenue.

Supply chain finance gives you access to an off-balance sheet revolving line of credit you can use to stabilise your cash flow and strategically grow your company.

You pay no fees until you draw funds to use.

You can even earn supplier discounts by offering them early payments.

You return the funds when your customers pay – up to 3 months later.

This cash flow solution is designed to help you maintain a strong supply chain, negotiate better deals with your suppliers, build loyalty and make more sales.

Case Study: Construction Company - $2 Million Facility

The Challenge

Our client had suppliers on standard 30 day terms, though many wanted shorter terms to deal with their own cash flow issues.

While the client was happy to oblige, the shorter payment terms hurt his business and implementing a strategy to pay just a few suppliers was time consuming and expensive.

The Solution

The client was provided with an off-balance sheet Supply Chain Finance (SCF) solution allowing suppliers to opt-in for early payments as and when they needed.

When the supplier chose to receive an early payment, a small discount fee was deducted.

The client was able to extend payment terms to 90 days.

The Result

Over 30 percent of the suppliers opted for early payment and engaged with the discount program seeing it as a positive initiative.

Our client was able to better manage its working capital, take advantage of supplier discounts, and smooth out cash flow cycles by extending its term when needed

How Supply Chain Finance Works

Your suppliers’ invoices are simply paid by us – according to your payment term or earlier if they wish.

You return our funds after your customers pay, so you could, effectively, be running your business using O.P.M. (other people’s money).

Your own money is preserved to invest in building growth.

What growth/sales opportunities could you benefit from, if you had access to more cash?

The other good news is that where early payment is requested by a supplier you have the potential to earn a discount, which adds to your revenue.

Would this opportunity be attractive to you and your business? For many suppliers, this return can be substantial.

Why Supply Chain Finance Is So Good For Your Business And For Your Suppliers

For you

Promotes Growth
Reduces risk
Off balance sheet
Reduces debt
Stronger supply chain
Increases profits & EBITDA
Higher credit limits
Builds cash reserves

For your suppliers

Timely payment of invoices
Early payment available
Improved cash flow
Reduced borrowing
Safeguard credit rating
Reduced risk
Non recourse