What is it?
Partnership between the Seller and the Financial Institution allowing pre-agreed distributors to extend their payment terms by purchasing the receivables of the seller:
- Financial Institution offers the distributor the opportunity to extend their payment terms regarding the invoices sent by the seller.
- Not mandatory for Distributors to be customers of Financial Institution or open any accounts
The distributor finance offering is structured as “Late Payment”
- Distributor gets short term funding; at attractive rates, without using your own credit lines, and without paying high working capital funding costs to Financial Institutions
- Off-balance sheet funding solution
- Financial Institution takes payment risk on the Distributor
The Late Payment Platform generates benefits across the Supply Chain. Offering the distributor the possibility to extend its payment terms will improve his working capital position allowing the seller to increase its sales.