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SERVICE · FOR COMPANIES

Supply-chain finance

Financing from purchase to sale.

Financing designed for each link of the chain lets suppliers, manufacturers and buyers manage funds between them.

For
Companies
Provider
MrPRX
OVERVIEW

About this service

Supply-chain finance helps companies manage the flow of cash between buyers, manufacturers and suppliers. By reviewing trade relationships, invoices, receivables and the credit of each party in the chain, solutions can be designed around the purchase-to-sale cycle so working capital is funded in a more coherent way.

COMPARE

Compared with a bank loan

CriterionSupply-chain financeBank loan
Funding ceilingSized to the chain's trade volume and receivables and the anchor buyer's credit, not only the company's own.Limited by the company's credit line at the bank, its collateral and large-exposure rules.
TermShort term, aligned with the buy-sell cycle (usually up to a year).Mostly short-term (about one year) and renewed; project loans run longer.
RepaymentFrom collected receivables; settled when the invoice or certificate matures.Monthly instalments or a lump sum at maturity, per the contract.
Rate and effective costPriced on the creditworthy buyer's credit; usually cheaper for a smaller supplier than a standalone loan.Nominal rate within Money and Credit Council limits; fees and side requirements (such as compensating deposits) push the effective rate higher.
Collateral and guaranteesThe receivables themselves and the buyer's payment commitment.Property collateral, cheques and promissory notes, and guarantors.
Time to fundsOnce the programme is set up, each invoice or document is cashed quickly.A few weeks to a few months, depending on the bank and how complete the file is.

This is a general comparison, not a review of your company; a specialist calculates the exact ceiling, rate and cost for your situation.

FAQ

Questions about this service

How can we grow sales and purchases across the chain without straining cash?
With instruments such as GAM certificates, bills of exchange and factoring, the seller can offer credit terms and cash its receivables before maturity, while the buyer increases purchases without paying cash early. Trade volume grows without locking up either side's liquidity.
How can suppliers get the cash they need faster?
A supplier can discount buyer-approved invoices or receivable documents with a bank or financial institution and get paid before maturity. Because the buyer's credit backs these documents, it is usually faster and simpler than a standalone loan.
Can the whole chain's working capital be financed as one programme?
Yes. In a supply-chain finance programme, an anchor company (usually the main buyer or manufacturer) sets a credit line for the whole chain, and suppliers and distributors use different instruments within it. The design depends on how your chain buys and sells.
How can a buyer's financial strength be used to fund its suppliers?
When a creditworthy buyer approves a supplier's receivables or issues GAM certificates or bills for it, the supplier is financed on the buyer's credit, usually at a lower cost than on its own. The buyer gets a more stable supply chain and better purchase terms.
Which financing instrument fits our chain best?
It depends on your role in the chain, your collection period, your buyers' credit and the amount needed. In the review session we compare GAM certificates, factoring, electronic bills and domestic letters of credit for your chain.
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