Supplier Finance
Supplier Finance is a revolving working capital facility that can be used to finance the purchase of products or services. This facility is linked to a credit-insured limit arranged under a special Credit Insurance Policy that will be taken out. As a source of finance it has no impact on existing banking facilities.
WHO CAN USE IT
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Established profitable businesses,
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that operate in manufacturing, retail or wholesale and distribution sectors.
HOW DOES IT WORK?
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You nominate the invoice(s) and amount(s) you wish us to pay
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Copy invoices/statements are provided by you together with suppliers bank details
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The Lender make the payment to your supplier (minimum value of £50,000)
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The Lender allow you a credit period of up to 180 days for repayment
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You provide us with a Bill of Exchange for the amount paid to mature in no more than 180 days time
WHAT ARE THE BENEFITS?
It creates opportunities to:
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Purchase additional stock from existing suppliers to meet seasonal demands
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Improve trade relationship with suppliers
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Source new suppliers
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Negotiate bulk order discounts
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Negotiate early payment discounts
OTHER BENEFITS
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Extended time to pay invoices by up to 180 days
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Access to finance without having to provide security
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Easy to put in place
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Flexible, can be used as and when required
WHAT ARE THE COSTS?
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Interest charge covering amount and period of credit granted at rates lower than standard business overdraft rates
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Handling Fee to include insurance premium on each transaction
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The above charges are payable in advance of each transaction