Supply Chain Financing

Supply Chain Financing

Get the Funding You Need to Extend Payment Terms to your Buyers and Pay Your Suppliers On Time. Receive an Advance of up to 100% in just 24 Hrs with Supply Chain Financing.

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WHAT IS SUPPLY CHAIN FINANCING?

​​​Supply Chain Financing, also known as "Supplier Financing" and "Reverse Factoring," is a system in which businesses extend their payment terms to suppliers while providing the option for their large SME Suppliers to get paid early. This optimizes cash flow and is a win win situation for supplier and the buyer because the buyer is able to optimize working capital while the supplier is able to atain more operating cash flow, which minimizes risk accross the cycle. As cross-globe supply chains continue to emerge and expand, businesses are under pressure to unlock the working capital stuck in their supply chains.

Supply chain financing is a great tool for companies that need financing to purchase inventory. Unlike purchase order or production finance, the goods being purchased do not need to be pre-sold. These purchase facilities are usually part of a larger asset-based facility that work in conjunction with each other.Like purchase order funding, vendor finance companies need to know where the goods are at through the entire cycle. Supply chain financing companies will want to track the goods and preferably through the logistics provider's web portal. Supply chain financing companies will sometime require that the client utilize their nominated freight forwarder to ensure that they will be able to track the goods at any time. At Green Capital Funding, LLC We work with many well-capitalized lenders that are aggressively lending. Many of our clients, companies just like yours, can receive the working capital they need even in today's hard economic times.

Get the Funding You Need to Extend Payment Terms to your Buyers and Pay Your Suppliers On Time. Receive an Advance of up to 100% in just 24 Hrs with Supply Chain Financing.

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THE PROCESS

Supply Chain Financing

Step 1: Supplier Submits Invoice

Supplier sends their invoices to the buyer. The buyer than approves the invoices (to be paid at a specified maturity date).

Supply Chain Financing

Step 2: Supplier Sells Receivables to Lender

The supplier sells their receivables to the lender in return for an advance payment. If the receivables are sold before the maturity date, the lender will advance up to 100% of the invoice (less a small fee).

 

Supply Chain Financing

Step 3. Buyer Pays Invoice

At maturity, the buyer pays the full invoice amount to the lender. The lender will advance you--the supplier--the remaining percentage.

WHO SHOULD APPLY FOR SUPPLY CHAIN FINANCING?

Supply Chain Finance works for businesses in a variety of sectors, including automotive, electronics, manufacturing, retail, and many others. Supply chain finance is a true win-win solution because buyers can extend their payment terms, and suppliers can get paid earlier. We collaborate with buyers and suppliers to construct a supply chain finance solution that fits the evolving needs of both parties.

To qualify for Supply Chain Financing, your business must:

  • Be a product re-seller/distributor
  • Have commercial or government customers
  • Have orders of $50,000 or more
  • Have transactions with a gross profit margin of at least 20%
  • Have orders without a guaranteed sale or consignment sale clause
  • Companies that don’t qualify for financing at a traditional bank or financial institution.

BENEFITS OF SUPPLY CHAIN FACTORING

Increase Cash Flow through Existing Assets - Bridge the gap between invoices and collection, and access up to 90% of the cash tied up in your invoices within 24 hours

Win-Win Solution for Both Trading Partners - Buyers can extend their payment terms and suppliers can get paid early.

It is Not a LoanSupply Chain Financing is considered a sale of receivables, and not a debt.

It is Not Factoring - 100 percent of each invoice—minus a very small transaction fee—is paid to the supplier, and there is no recourse burden on the supplier once the invoice is paid.

Lower Costs- Asset-Based Financing is less costly than most alternative solutions.

Opens Up Doors for New Business Opportunities - Your financing will increase as your contracts increase. This gives you the flexibility to take on multiple contracts at once & grow your business.

Cash in as Little as 24 Hours  •  No Up Front Fees  •  Trusted Experts & Partners in Your Success   •Competitive Rates & Terms

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