Stanley K, CFO – Private Label Cellphone Wholesaler
Many global suppliers are very small companies with high overhead costs. They supply materials to large corporations 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 pre-determined 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.
Supply chain financing may be right for your company if you have:
• At least $20 million in annual sales
• At least 3 years of profitability
• Solid net worth
Supply chain financing allows small suppliers to effectively extend credit to large customers and seize the opportunity to build relationships with large corporations. Corporations get to 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.
Discuss your specific needs with our finance specialists, who will walk you through our process.
Download our short application form; you can finish filling it out faster than you can drink a cup of coffee, and our account specialists will keep you updated every step of the way.
The funds you need will be deposited directly to you or your supplier’s bank account, and you can return to business as usual – but with peace of mind.
This business was able to keep growing with the help of ExpoCredit despite its long cash flow cycles
ExpoCredit helped this business secure working capital to meet their client demands.
ExpoCredit helped this seafood business to expand into new markets.
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Newsletter – April 2019