Part Of The TRADE GATEWAYS Programme
A New Model Of Supply Chain Finance
Supply-Chain.Finance helps address some of the Funding Problems encountered by SME's
Supply chain finance aims to lower costs for both buyer and seller. It can bring stability and flexibility to these supply chains by bringing the lowest cost of capital to where it is needed most in the supply chain
Buyers use third-party funder to extend payment terms The third-party funder pays the buyer's suppliers early, giving them that liquidity. The buyer then pays that third party according to the buyer's payment terms, preserving the buyer's cash for longer.
Usually, the flow is that the suppliers ship the goods, they invoice the buyer, and the payment terms start running. The buying organization issues the payments upon expiration. Supply chain finance can extend payment terms, and is reverse factoring because it's the buyer that is financing the order rather than the supplier trying to finance it.
Supply Chain Finance Features
This consists of Connecting and Funding an enterprise buyer with a high credit rating, with a seller across the Digital Trade Gateways & B2B Marketplaces in the Programme
For banks and financiers that participate in Supply Chain Finance, the main benefit is that they earn a profit by paying a discounted rate on invoices to suppliers, and then receiving the total payment amount at a later date from the buyer. For instance, if the bank regularly pays a supplier in 10 days in exchange for a 3% discount on an invoice, and then receives full payment on the invoice from the buyer on day 30, they effectively earn a 3% profit on the invoice over a 20-day period.
The Programme allows a seller to initiate Supply Chain Finance down the chain as necessary, and as such guarantee to be a part of the Programme. It also means that the sellers can get to keep more of their money as there is less to be deducted from their invoices. All of this occurs without impacting the supplier or buyer’s balance sheet
Supply-Chain Finance Video
How does supply chain finance work?
Large multinational companies are highly likely to honour invoices from suppliers. That means the suppliers that work with them can get 100% of the value advanced from a lender, minus a small fee, once the buyer has approved the invoice for payment — because, the risk of non-payment from a Large multinational companies is low.
The Supply Chain Finance Process
Supply-Chain.Finance USP
Supply Chain Finance is mutually beneficial for both buyers and suppliers because it helps both parties stabilise their cash flow. Suppliers get similar benefits to invoice financing— they get paid within a few days rather than waiting for extended payment terms. The cost can be lower because supply chain funding is based on the buyer's credit rating.
Buyers can extend their payment terms, i.e. delay paying suppliers for longer than average, without directly putting pressure on their suppliers. Usually, it's the Supply Chain Finance company whose working capital is affected — leaving both the buyer's and supplier's working capital free to use for other business purposes.
Supply-Chain.Finance also automates all the above process and provides additional features by using the Regional Trade Gateways listed below to execute transactions agreed at applicable B2B Marketplaces.
Supply Chain Finance Video 2
Regional B2B Marketplaces - Africa To South America
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Related Videos
Some Trade Gateways in the Programme below. Over 100 More for Major Port Cities can be seen here
Abu Dhabi
AbuDhabi.Trade
Afghanistan
Kabul.Trade
Albania
Tirana.Trade
Algeria
Algiers.Trade
Australia
Australian States
NewSouthWales.Trade
WesternAustralia.Trade
Victoria.Trade
Australian Cities
Adelaide.Trade
Perth.Trade
Melbourne.Trade
Bangladesh
Dhaka.Trade
Belgium
Brussels.Trade
Bosnia
Bosnia.Trade
Sarajevo.Trade
Botswana
Gaborone.Trade
Brazil
Brasilia.Trade
RioDeJaneiro.Trade
SaoPaulo.Trade
Brunei
Brunei.Trade
Bulgaria
Sofia.Trade
Cambodia
Cambodian.Trade
PhnomPenh.Trade
Canada
BritishColumbia.Trade
Calgary.Trade
Edmonton.Trade
Hamilton.Trade
Manitoba.Trade
NovaScotia.Trade
Ottawa.Trade
Quebec.Trade
Winnipeg.Trade
Cape-Verde
Cape-VerdeTrade
Chile
Santiago.Trade
China
Anhui.Trade
Henan.Trade
Heilongjiang.Trade
Hohhot.Trade
Hunan.Trade
Hubei.Trade
Gansu.Trade
Guangxi.Trade
InnerMongolia.Trade
Jiangsu.Trade
Jiangxi.Trade
Liaoning.Trade
Qinghai.Trade
Qinhuangdao.Trade
Shaanxi.Trade
Shanghai.Trade
Shijiazuang.Trade
Wenzhou.Trade
Xinjianguygur.Trade
Yunnan.Trade
Zhejiang.Trade
Zhongshan.Trade
Costa-Rica
Costa-Rica.Trade
Columbia
Bogota.Trade
Denmark
Aarhus.Trade
Egypt
Alexandria.Trade
El-Salvador
El-Salvador.Trade
San-Salvador.Trade
Eswatini
Eswatini.Trade
Faroe-Islands
Faroe-Islands.Trade
Finland
Helsinki.Trade
France
Marseille.Trade
Germany
Duisburg.Trade
Ghana
Accra.Trade
Guatemala
GuatemalaCity.Trade
Honduras
Tegucigalpa.Trade
Hong Kong
Hong-Kong.Trade
Hungary
Budapest.Trade
India
AndhraPradesh.Trade
Bangalore.Trade
Gujarat.Trade
Karnataka.Trade
Kanpur.Trade
Kerala.Trade
Kolkata.Trade
Lucknow.Trade
MadhyaPradesh.Trade
Maharashtra.Trade
New-Delhi.Trade
Odisha.Trade
Rawalpindi.Trade
Sendai.Trade
Surat.Trade
TamilNadu.Trade
UttarPradesh.Trade
Visakhapatnam.Trade
Ireland
Irish.Trade
Italy
Milan.Trade
Naples.Trade
Indonesia
Jakarta.Trade
Israel
Jerusalem.Trade
Tel-Aviv.Trade
Jamaica
Kingston.Trade
Japan
Chugoku.Trade
Ehime.Trade
Fukuoka.Trade
Funabashi.Trade
Gunma.Trade
GreaterTokyo.Trade
Hamamatsu.Trade
Hiroshima.Trade
Ishikawa.Trade
Iwate.Trade
Kagawa.Trade
Kagoshima.Trade
Kanagawa.Trade
Kinki.Trade
Kitakyushu.Trade
Kumamoto.Trade
Kyoto.Trade
Miyagi.Trade
Niigata.Trade
Okayama.Trade
Osaka.Trade
Sagamihara.Trade
Japan
Saitama.Trade
Sakai.Trade
Sapporo.Trade
Sendai.Trade
Shimane.Trade
Shizuoka.Trade
Tochigi.Trade
Tohoku.Trade
Yamanashi.Trade
Yokohama.Trade
Jordan
Amman.Trade
Kenya
Nairobi.Trade
Mombasa.Trade
Kuwait
Kuwait-City.Trade
Lesotho
Maseru.Trade
Lithuania
Vilnius.Trade
Malaysia
KualaLumpur.Trade
Mauritius
Port-Louis.Trade
Mexico
MexicoCity.Trade
Moldova
Moldova.Trade
Chisinau.Trade
Morocco
Rabat.Trade
Myanmar
Yangon.Trade
Namibia
Windhoek.Trade
Netherlands
Rotterdam.Trade
New Zealand
New-Zealand.Trade
Auckland.Trade
Norway
Bergen.Trade
North Macedonia
NorthMacedonia.Trade
Nicaragua
Managua.Trade
Nigeria
Abuja.Trade
Kano.Trade
Lagos.Trade
PortHarcourt.Trade
Pakistan
Karachi.Trade
Multan.Trade
Panama
Panama-City.Trade
Peru
Lima.Trade
Poland
Warsaw.Trade
Portugal
Lisbon.Trade
Romania
Bucharest.Trade
Saudi-Arabia
Saudi-Arabia.Trade
Jeddah.Trade
Riyadh.Trade
Serbia
Belgrade.Trade
Seychelles
SeychellesIslands.Trade
Singapore
SingaporeIsland.Trade
South-Africa
South-Africa.Trade
Capetown.Trade
Durban.Trade
Johannesburg.Trade
South Korea
Busan.Trade
SouthKorea.Trade
Spain
Bilbao.Trade
Syria
Aleppo.Trade
Damascus.Trade
Sweden
Gothenburg.Trade
Switzerland
Basle.Trade
Taiwan
Taipei.Trade
Tanzania
Tanzania.Trade
Thailand
Bangkok.Trade
Phuket.Trade
Tunisia
Tunis.Trade
Turkey
Ankara.Trade
Uganda
Kampala.Trade
United Kingdom
Birmingham.Trade
Bristol.Trade
Felixstowe.Trade
Glasgow.Trade
Liverpool.Trade
LondonUK.Trade
Manchester.Trade
NorthernIreland.Trade
UK Counties
Buckinghamshire.Trade
Cornwall.Trade
Devon.Trade
Dorset.Trade
EastSussex.Trade
Hertfordshire.Trade
Humberside.Trade
Leicestershire.Trade
Lincolnshire.Trade
Merseyside.Trade
Northamptonshire.Trade
Nottinghamshire.Trade
Shropshire.Trade
Staffordshire.Trade
WestMidlands.Trade
WestYorkshire.Trade
Wiltshire.Trade
Worcestershire.Trade
WestMidlands.Trade
WestYorkshire.Trade
Wiltshire.Trade
Worcestershire.Trade
United States
US States
Alabama.Trade
Delaware.Trade
Illinois.Trade
Indiana.Trade
Iowa.Trade
Louisiana.Trade
Maryland.Trade
Massachusetts.Trade
Minnesota.Trade
Mississippi.Trade
Missouri.Trade
NewHampshire.Trade
Nevada.Trade
New-Jersey.Trade
New-York.Trade
NorthCarolina.Trade
NorthDakota.Trade
Oklahoma.Trade
RhodeIsland.Trade
SouthCarolina.Trade
SouthDakota.Trade
Utah.Trade
Wisconsin.Trade
WestVirginia.Trade
Wyoming.Trade
US Cities
Baltimore.Trade
Columbus.Trade
Corpus-Christi.Trade
Detroit.Trade
ElPaso.Trade
Fargo.Trade
FortWorth.Trade
Indianapolis.Trade
Jacksonville.Trade
Las-Vegas.Trade
Long-Beach.Trade
Los-Angeles.Trade
Louisville.Trade
Madison.Trade
Memphis.Trade
Michigan.Trade
Milwaukee.Trade
Minneapolis.Trade
Nashville.Trade
New-Orleans.Trade
New-York.Trade
Portland.Trade
SanAntonio.Trade
SanDiego.Trade
SanJose.Trade
SanFrancisco.Trade
Seattle.Trade
Tampa.Trade
Uruguay
Montevideo.Trade
The Gambia
TheGambia.Trade
The Philippines
ThePhilippines.Trade
Uzbekistan
Tashkent.Trade
Vietnam
Hanoi.Trade
Zimbabwe
Harare.Trade