How our experts can assist
- how supply chain finance differs from a loan – Supplier finance or reverse factoring is an extension of the buyer’s accounts payable and is not considered financial debt. For the supplier, it represents a true sale of their receivables;
- how supply chain finance differs from factoring – 100 percent of each invoice-minus a very small transaction fee-is paid to the supplier, and there is no recourse burden on the supplier once the invoice is paid; and
- that supply chain finance is not just for large companies – It provides value for firms of all sizes and credit ratings, including SME suppliers.
Our commercial finance experts will advise you of the benefits of supply chain finance to your business and how to work your way through the complexities of a supply chain finance agreement.
Benefits to buyers and exporters
Benefits to the buyers / importers who use supply chain finance are listed below by our expert advisors.
- buyers can maintain a healthy balance sheet;
- buyers maintain a good relationship with suppliers;
- promotes competition / diversity in suppliers;
- allows buyers to make purchases in bulk to save costs; and
- buyers can work with complex end-to-end supply chains.
Benefits to suppliers and exporters
Benefits to suppliers / exporters who use supply chain finance are listed below by our expert legal advisors.
- suppliers can get paid earlier than their usual credit terms;
- little financial risk;
- doesn’t come at great cost the supplier;
- allows supplier to improve its cashflow to work on numerous deals simultaneously; and
- helps provide liquidity and may reduce financing costs.
Francis Wilks & Jones is a leading firm of solicitors with expertise on supply chain finance. We are genuine experts in what we do and regularly act on behalf of our clients who require advice on supply chain finance.