Supply Chain Finance
To allow both buyers and suppliers to free up working capital, organizations can utilize supply chain finance, also known as reverse factoring or confirming.
Supply chain finance gives suppliers the flexibility to “sell” approved invoices to financial institutions for a discount that is dependent on the credit risk of the buyer, typically allowing suppliers access to cheaper funding than they can obtain themselves.
A supply chain finance program is often deployed at a time when a company is reviewing it’s supplier payment terms. Our Working Capital Analysis will help buyers to benchmark and standardize payment terms to increase free cash flow.
Supply chain finance helps strengthen your supply chain and reduce the likelihood of disruption through supplier failure.
Supply chain finance allows organizations to easily tie sustainability objectives with financial incentives for suppliers to encourage better behaviors, as opposed to punishing suppliers for non-compliance.