Supply Chain Finance
Supply chain finance. We offer a whole range of trade finance and export funding products that are flexible and structured to meet the requirements of the client. Financing your full supply chain with risk mitigation techniques to optimize the management of working capital and liquidity in the supply chain. Receivables financing is available to foreign suppliers based on your creditworthiness and financial strength and supports off-balance sheet inventory arrangements.
These are global financing solutions that can support facilities based on payables, receivables, and inventory.
Implementing factoring, purchase order funding, inventory finance, letters of credit, structured guarantees and other structured trade finance and supply chain finance options can help align the needs of both buyers and sellers and minimize risk across the supply chain.
The funding structure can include:
IMPORT FINANCING
In combination with receivable discounting, we can help clients import/purchase additional pre-sold products from their vendors with a letter of credit or documentary sales terms. Funding arrangements that can be a particularly good fit for very high-growth or seasonal businesses.
INVENTORY FINANCING
For clients dealing in goods that have a large and “liquid” market and holding goods in reputable third-party warehouses, we can arrange financing against the standing inventory. This inventory financing is typically arranged with conditions on the advance rate and tenor of funding and must include sound backup liquidation planning.
VENDOR FINANCING
For firms with solid financials and $500+ million in annual revenues, we can arrange vendor finance programs (also known as “reverse factoring” or “payables financing”). Often structured with “off-balance sheet” treatment for our client, these arrangements can be a true “win-win”—offering our client’s vendors greater liquidity at a lower interest cost while allowing our client longer payment terms.
BENEFITS
The program allows our clients to optimize their working capital by providing solutions to you and your upstream and downstream partners. For instance, you can extend your payment terms and avoid discrepancies and fees associated with letters of credit and your suppliers benefit from an on-demand pool of liquidity, lower borrowing costs, faster funding, and a higher advance rate.
For more information, please contact us via this SHORT FORM for more information.