Offering this programme to your suppliers allows them access to immediate liquidity whenever they need it with 3rd party funding. The key is that you can now extend your credit terms without impacting the strong relationship built up with your suppliers.
The total cost of supply chain disruption in 2020 is estimated to be US$4T. Not just money, great amount of time is spent to deal with these disruptions. A well financed supply chain mitigates risks and disruption, ensuring business continuity.
In most cases, your suppliers would get better financing rate through a Supply Chain Programme, reducing their cost. With this immediate access to funds, it puts you at a stronger position at the next negotiation and improves relationship with them.
Having a supply chain finance programme does not increase your debt obligations as it stays as a payables in your books. Just that you pay later.
Unlike factoring, supply chain finance is a financing solution initiated by the buyer where the buyer agrees to pay an invoice early for a discount.
With Banco digital platform, Supply Chain Finance is now accessible to enterprises of all sizes and industries.
Your programme can be funded by single or multiple funders (syndicate), or you can self-fund the programme entirely, or a mixed of self-funding with 3rd party funders. Your programme, you decide.
With Banco digital platform, implementing your own Supply Chain Finance programme has never been easier. Our client success team is ready to guide you throughout the entire process. Leave the work to us!