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?
Established profitable businesses, that operate in manufacturing, retail or wholesale and distribution sectors.

How Does It Work?

• You nominate the invoice(s) and amount(s) you wish us to pay

• Copy invoices/statements are provided by you together with suppliers bank details

• The Lender make the payment to your supplier (minimum value of £50,000)

• The Lender allow you a credit period of up to 180 days for repayment

• 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:

• Purchase additional stock from existing suppliers to meet seasonal demands

• Improve trade relationship with suppliers

• Source new suppliers

• Negotiate bulk order discounts

• Negotiate early payment discounts

Other Benefits

• Extended time to pay invoices by up to 180 days

• Access to finance without having to provide security

• Easy to put in place

• Flexible, can be used as and when required

What Are The Costs?
Interest charge covering amount and period of credit granted at rates lower than standard business overdraft rates.

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