How It Works

Free Up the Cash You Need Without Taking on More Debt
Supply chain financing allows small suppliers to effectively extend credit to largecustomers and seize the opportunity to build relationships with large corporations.

How ExpoCredit’s Supply Chain Financing Solutions Work

Many global suppliers are very small companies with high overhead costs. They supply materials to large customers that pay invoices on a 30, 60, or 90-day cycle. While these growing companies understand the opportunity of getting a purchase order from a very large buyer, they find it difficult or impossible to wait one to three months to be paid.

Supply chain financing, also known as reverse factoring, is a financial supply chain management solution where a finance company such as ExpoCredit provides a corporate buyer (our client) with funding for materials by purchasing them directly from the supplier. The supplier is paid right away, and the client pays ExpoCredit back after a predetermined number of days (usually 30, 60, or 90 days). Supply chain financing offers faster funding than a bank loan, and there are no financial covenants, asset appraisals, or personal guarantees.

Qualifying for Supply Chain Financing

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Supply chain financing may be right for your company if you have:

• At least $20MM in annual sales.
• At least 3 years of profitability,
• Solid net worth.

Supply Chain Financing Benefits Everyone

Supply chain financing allows small suppliers to effectively extend credit to large customers and seize the opportunity to build relationships with large corporations. Corporations can take advantage of supplier prompt payment discounts. Production is not delayed by supplier cash crunches, which fosters good relationships between corporations, their suppliers, and all other parties on the supply chain.

As an international finance organization, ExpoCredit understands the complexities of international transactions and global supply chains. We have over 20 years of experience providing supply chain financing solutions to international and domestic markets across a multitude of industry sectors, enabling both our clients and their suppliers to expand and achieve their strategic objectives.