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Supply Chain Finance






Supply Chain Finance (SCF) programs are structured around the following figures: buyers or contractors, their suppliers, one or more financial partners (factors, banks) and a ‘servicer’, who manages and arranges access to the underlying electronic platform. 
Advantages of Supply Chain Finance programs for Major Buyer and for their Suppliers

 

For Suppliers:


– Benefit from financing solutions at very competitive rates, based on the credit strength of the Buyer
– Generate working capital and improve the cash conversion cycle through the reduction of Days Sales Outstanding
– Access to new stable sources of financing without impacting current bank lines
– Benefit from better tracking of invoices and payments thanks to the monitoring platform and detect any disputes with the clients beforehand
– Possibility of deconsolidating the receivables off balance sheet, according to your needs



For Buyers:


– Drastically improve free cash flow and the cash conversion cycle through the extension of Days Payable Outstanding
– Reduce cost of goods sold through the negociation of discounts in exchange for early payment
– Reduce processing costs after setting up an outsourced centralized payment service
– Optimize payment times according to suppliers geographies
– Improved suppliers relationships
– Contribute to the sustainability of the supplier network (societal approach)

 

SCF programs are tailor made, based on the objectives of the Client, combined with a very specific diagnostic of its spend with suppliers. The implementation of this type of program varies between 4 and 12 months, depending on the complexity of the chosen solution.

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