Suppliers receive funding in real time, even prior to invoicing, on the basis of their agreed delivery milestones. This bridges the gap between payment obligations and supplier receivables
01 Lengthy receivables cycles from clients
02 Mismatched receivable and payable time-frames result in extended cash-to-cash cycles for the supplier
03 Payments to ‘sub-vendors’ typically need to be made upfront and exert pressure on working capital
04 Limited access to traditional lending and process fatigue from application requirements
SME has a robust appraisal process to evaluate credit quality based on assessment of the client
Funding milestones and payment frequency can be customized to suit a supplier’s requirements, based on perfomance
Distributors activate their accounts on the SME platform to view their invoices and choose the number of days of credit extension and the commensurate premium offerWith funding milestones, payment frequency can be customized to suit the supplier’s requirements. Payment frequencies could be daily, weekly or monthly
Align receivables cycles with payables timeframes
Potential to structure solution as an off-balance form of funding
Maximised coverage of dealer and distributor network
Credit enhancement options available for distribution network improve sales performance
Improves quality and economics of relationships with distribution networks