It is not a loan
Supplier finance or reverse factoring is an extension of the buyer’s accounts payable and is not considered financial debt. For the supplier, it represents a true sale of their receivables.
Supply chain finance, also known as supplier finance or reverse factoring, is a set of solutions that optimizes cash flow by allowing businesses to lengthen their payment terms to their suppliers while providing the option for their large and SME suppliers to get paid early.
As global supply chains stretch across the globe with multinational buyers on one side and a diverse group of suppliers in numerous countries on the other, corporations are under pressure to unlock the working capital trapped in their supply chains.
This results in a win-win situation for the buyer and supplier. The buyer optimizes working capital, and the supplier generates additional operating cash flow, thus minimizing risk across the supply chain.
As a buyer, how many millions are locked inside your supply chain?
Supplier finance or reverse factoring is an extension of the buyer’s accounts payable and is not considered financial debt. For the supplier, it represents a true sale of their receivables.
Supply chain finance with PrimeRevenue provides multibank capability by providing availability to more than 100 financial institutions worldwide.
With our solutions, 100 percent of each invoice-minus a very small transaction fee-is paid to the supplier, and there is no recourse burden on the supplier once the invoice is paid.
It provides value for firms of all sizes and credit ratings, including SME suppliers.
Our programs can be self-funded by the buyer, established without the participation of a bank for funding, or composed of a mixed program where financing is shared by the buyer, capital markets, and financial institutions.
With PrimeRevenue product solutions, the implementation and ongoing management of a supplier finance program is made easier and faster than with any other solution in the market. Contact us now to learn how we are helping large multinational and midmarket organizations unlock cash trapped in the supply chain.
Extending payment terms just got easier. With our programs, suppliers get paid as soon as tomorrow.
Both sides of the supply chain benefit from our strategic approach.
The main benefit of supply chain finance is that the buyer does not pay any fee to extend its payment terms and the supplier only pays a small discount if they want to get paid early.
Supplier finance works for companies in a variety of sectors, including automotive, electronics, manufacturing, retail, and many others. It works for companies on both sides of the supply chain. Buying organizations can extend their payment terms, and suppliers can get paid earlier. Supply chain finance is a true win-win solution for both trading partners. The PrimeRevenue team works closely with buyers and suppliers to craft a supply chain finance plan that fits the evolving needs of both parties. Contact us today to find out how we can serve your needs.