Our product finance provider could be tailored to companies that have regular payments to multiple suppliers, and it was designed to complement your existing lender process. Our relationship with you and our understanding of your business allow us to offer suppliers the opportunity to prepay payments before the business terms you have negotiated with them; improve working capital and reduce their risk of non-payment. Our service allows you to optimize your working capital position and benefit from commercial discounts that suppliers can offer for quick payment. The main advantage of supply chain financing is that the buyer does not pay a fee for the renewal of its payment terms and the supplier pays only a small discount if it wishes to be paid prematurely. The supplier paid its bills earlier; As a result, it can more easily manage its cash flow and systematically reduce debt management costs. In addition, since liability is the liability, the principal benefits from a better interest rate for the commercial rebate than would have been obtained by going directly to a factoring company. Reverse factoring is very useful for small businesses that have large groups for customers because it creates a more sustainable business relationship, because the big company helps the smaller one, and it gets some extra money. This notice does not take into account the poor relationships caused by unilateral changes in credit conditions. Small businesses generally have no choice but to accept the additional financing costs of this process. In a factoring procedure, if there are problems with the payment of the invoice, the supplier who is responsible and must return the money he received. In the reverse factoring process, because these are validated invoices, the business is protected as soon as the supplier receives payment from the postman. The postman will have to receive his money from the client.

Finally, the supplier of a commercial rebate system is obliged to be paid in cash regardless of its cash flow. Some reverse factoring platforms have recognized this problem and therefore offer suppliers a more collaborative financing method: they choose the invoices they want to receive themselves, the others are paid on the due date. [2] Unlike basic factoring, the initiative does not come from the supplier who would have submitted invoices to the factor to be paid previously. This time, it is the customer who starts the process – usually a large company – with the choice of invoices that they charge earlier by the postman. Then the supplier will decide for itself which of these bills it must pay based on the postman. It is therefore a collective project between the customer, the supplier and the postman [citation necessary]. Some of the products that could be sold under the Global Supply Chain Financing banner, but are not limited to: 1) Global Asset-based Lending (GABL) – Allows small and medium-sized enterprises to monetize offshore or transit inventory. The result is an increase in liquidity for this category of borrowers, 2.) Inventory Financing – Allows companies that supply large buyers to finance the inventory needed for buyer management.

The result is an improvement in the net cash conversion cycle for the buyer and at the same time makes capital available to the supplier at a reduced rate. 3.) Debt Management Services – Provides external outsourcing of debt management and collection process. It also provides financing for these receivables and guarantees for the payment of these receivables. 4.) Payables Discounting – Offers third-party outsourcing of the payment process and uses a buyer`s credit quality to obtain advantageous financing rates for suppliers. The result is a lower cost of capital for the supplier, some of which can be passed on to the buyer. 5) Insurance – Others minimize business risk through freight, credit and transaction insurance.