Buyers want to extend payment for their payables as long as they can, to preserve their working capital; while Suppliers want to get paid for their receivables as soon as possible. How do you create a win-win?
Supply Chain Finance is the answer.
Supply Chain Finance provides early payment to Suppliers without regard for the payment date of the payable. The financing can take several forms and can be based upon either the Buyer’s credit rating, the Supplier’s credit rating or can be independent of these completely, but related to the current cost of capital in a given market.
In the distant past, the only recourse a Supplier had was to take a loan using their Accounts Receivable as collateral, but often had to accept an aggressive discount on the full value of the receivable. They also had to restrict this activity to a limited amount of their receivables. And worst of all, such a loan increased the amount of debt on their Supplier’s Balance Sheet and could negatively affect their credit rating.
PrimeRevenue OpenSCi provides multiple forms of finance that erases all of these negatives and provides the Supplier early cash for their receivables without incurring debt or experiencing deep finance expenses.
Your SCF solution therefore must be a custom mix that fits your specific cash flow needs and working capital requirements, and which allows easy flexibility for global variations and changes in your SCF goals over time. This is where PrimeRevenue OpenSCi excels.
Please read through this website and view our videos and new webinars to examine how you can enjoy the freedom of a global SCF program that works the way you want to work.
PrimeRevenue OpenSCi™ - Innovating the Financial Supply Chain©