Financing Solutions

Here are some benefits to buyers:

Cash flow management: By offering early payment discounts, buyers can manage their cash flow more effectively by reducing the amount of outstanding payables. This helps buyers to free up cash and reinvest in other areas of the business.

Strengthen supplier relationships: Dynamic discounting can help buyers build stronger relationships with its suppliers. By offering early payment, buyers can show that it values its suppliers and is willing to work with them to support their cash flow needs.

Cost savings: By taking advantage of early payment discounts, buyers can reduce their overall costs of goods sold. This can help buyers to remain competitive in the market and increase its profitability.

Supply chain efficiency: Dynamic discounting can help to streamline the invoicing and payment processes, which can improve the overall efficiency of the supply chain. This can lead to faster payment processing times, reduced manual labor, and improved accuracy of invoices.

Here are some benefits for Suppliers;

1. The Supplier has access to funding at the lower rate of the Buyer
2. Cashflow is predictable, as invoices are settled on time by the participating bank. This frees up capital to enable the supplier meet additional business demand.
3. Based on this opportunity. Suppliers may also be able to offer more competitive terms as the cost of late payment will not need to be built into the invoices. Effectively serving as a hedge against inflation.
4. Financing on the platform is effectively pre-approved for the Supplier and is not subject to the supplier’s risk rating. For companies that could not source financing ordinarily this is a major benefit.
5. For those with alternative means of financing, those credit lines are released for other purposes.

Here are some benefits to Financiers;

Diversification of investment portfolio: Allows Asset Managers to invest in a variety of corporates (investment grade and/or listed, or otherwise), across different sectors, providing diversification benefits to their portfolio.

Diversification of investment portfolio: Allows Asset Managers to invest in a variety of corporates (investment grade and/or listed, or otherwise), across different sectors, providing diversification benefits to their portfolio.

Reduced credit risk: Supply chain financing can help to reduce credit risk, as the financing is backed by the creditworthiness of the Corporate Buyer, and not the Supplier. SCF provides greater visibility into the supply chain, enabling Financiers to better understand the financial health of the businesses they are financing.

Higher yields, yet increased liquidity: Supply chain financing offers higher yields than other fixed-income investments, making it an attractive option for Asset Managers looking to enhance portfolio returns. The combination of higher-yields from short-termed investments will help portfolio managers optimize their investment strategies in a challenging investment environment.

Enhanced relationships with clients: SCF improves the efficiency of the financing process by providing faster access to working capital for businesses. Offering such innovative solutions to clients can help Financiers / Asset Managers deepen their client relationships.