Is your business growth being suffocated by its ability to buy in supplies to fulfil orders?
How fast could your company grow with with the right kind of working capital in place?
We believe our supply chain finance solution is unique in that we are able to offer “you” the “Buyer”, a revolving and pre-approved unsecured credit facility of up to 120 days; for you to pay your domestic or global suppliers quickly and simply.
The facility can be an alternative or can be run in addition to your existing funding or banking facilities. Moreover, because our supply chain and trade finance solution is completely off balance sheet with no debentures, consents or waivers required it can be very simple to setup.
Wherever you sit within the supply chain, you the UK “Buyer” have a pre-approved credit facility which can be used with one or many of your suppliers (termed as the “Seller”) and because you then become a cash buyer with your suppliers, our clients advise us they are often able to negotiate further discounts with their suppliers.
Supply Chain Finance Product Features & Overview:
- Up to 120 days to settle down the credit balance.
- Operates like a credit card with a pre-agreed credit limit.
- No requirement for Letters of Credit or Title over Goods.
- Your suppliers can be anywhere in the world or just down the road.
- Payments are made in the suppliers nominated currency.
- Transactions conducted on a secure on-line trading platform, giving both “Buyer” and “Seller” a full audit path.
- Payments & Administration are paperless and transparent
- Transparent and Fixed pricing, no hidden charges or extras.
- You as the UK “Buyer” are able to either hide the financing charges from the “Seller”, split the cost 50:50 or impose 100% of the financing cost upon the “Seller”. All your choice and as simple as a click of a mouse.
- You may use the facility to buy finished goods, component parts, raw materials or intangible services.
- All the bells and whistles you would expect from a sophisticated online platform.
- Once you are enrolled on the system you are able to trade with other buyers and sellers already on the platform.
Who is eligible for this Supply Chain Financing solution?
We look at transactions on our platform from two perspectives: a “Buyer” and a “Seller”. If you want to use our credit facility to buy in supplies, we term you as the “Buyer”. If you are wanting to sell your goods or services on the platform, we term you as a “Seller”. If you fit into the Seller category the process is a simple enrolment with no credit assessments. Buyers, however, do need the agreed credit limit approval to allow them to trade and the following criteria gives you and idea of who we can consider.
Buyers wanting to trade on the Platform:
- At the moment we can only accept UK registered Companies.
- A minimum turnover of £1 million.
- Minimum of two years trading history.
- Must be a credit worthy business.
Sellers wanting to trade on the platform:
- A seller can be located anywhere in the world.
- We are not interested in the credit worthiness of the Seller, good or bad.
- No minimum turnover or company size requirements.
- As a Seller you will enjoy non-recourse cash payments for your goods or services.
- We will of course need to validate the identity of the seller which is taken care of in the enrolment process.
An example of a supply chain finance facility working within a business.
An established engineering company based in South Yorkshire, has a small overdraft and uses invoice discounting. The business has a good reputation with its suppliers but as is the way of the world these days, is only given relatively short terms from them. Sales and orders has never been their problem having the additional working capital to fulfil orders has. The options available to the business owners where either turn the work away or work out a way to fund the new business? Here is what a supply chain finance facility can do:
- A £200,000 credit limit was approved.
- The owners knew they could turn the work around and have the finished items invoiced in 90 days, which meant the £200k revolving credit limit would give them £800,000 per annum of additional working capital.
- The selected number of suppliers where enrolled onto the system, some based here in the UK, 2 based in china and 2 Far East.
- The Finance Director negotiated for discounts on cash terms.
- Components and raw materials arrive and the work is turned round within the 90.
- The finished goods are delivered and invoiced, the invoice discounting clears the supply chain facility.
- The business owners now ask the Sales Director to go out and aggressively go after new work.
What supply chain finance is not good for:
- Poor performing companies.
- It is not a solution to finance historic debt.
- It is not a stock financing solution where the turnover exceeds 120 days.
- Not suitable for new start businesses.
- Individual financial transactions below £15,000