Supply Chain Finance / Dynamic Discounting
A win-win situation for you and your suppliers
Supply Chain Finance is an attractive method for improving your working capital by providing suppliers with access to advantageous financing by leveraging the buyer’s stronger credit rating.
There are two ways to achieve Supply Chain Finance:
The first option is Dynamic Discounting, which is a discount based on a sliding scale, so that the timing of when a supplier requests to be paid directly correlates to the amount of discount against the invoice, using your own cash.
The second option is true Supply Chain Finance where the (typically) larger buying company has a relationship with a third-party Financial Institution (FI), guaranteeing payment to the FI whilst enabling the supplier to benefit from the larger company’s better credit rating, and therefore typically cheaper access to liquidity.