About Supply Chain Financing
An often-untapped source of capital in a company lies in its supply chain. This relatively new alternative lending option is known as supply chain finance, or reverse factoring. Through this type of financing, businesses can optimize their cash flow by lengthening their repayment terms to their suppliers.
Since the supplier is generating income longer, and often collecting more interest, it becomes a smart move for them. They already have the client approved, so the risk is minimal, and the borrower is able to access their working capital more readily.
Supply chain factoring is not considered a loan, though. It’s simply an extended repayment period of your existing accounts payable. As such, it’s not necessary for your financing to go through one bank. ProFinance can work with your suppliers to extend your repayment terms for a small transaction fee. When your invoice is paid to the supplier, your terms are met.
Regardless of the size of your company, you may be eligible for this type of financing. Since you are working with what is already outstanding, your credit rating may not be an issue, depending on the type of funding.
Clients Choose ProFinance for their Loans and lines of Credit Because:
The quick and easy loan process lets you apply in minutes.
Upon approval, you can have your funds as early as the same day.
Our multiple alternative lending options let you choose the financing that fits your needs.
How It Works
Through supply chain factoring, the supplier will send their invoices to you as per their usual policies. You will approve the invoice and upload the data to your financing company through ProFinance. When you log in to your platform, you can see all of your invoices. However, the supplier can choose to leave the invoice alone and get the funds as preplanned at the date of maturity or they can sell their invoice to a ProFinance lender and receive their payment in advance for a small financing fee.
As the borrower, you are expected to make your payment as per the original date of maturity for your loan. This reduces the lender’s risk and your financing rates. When your loan matures, you pay the full invoice amount through ProFinance to the supplier.
All parties involved benefit because the borrower does not have to pay a fee to extend their repayment terms, thereby getting immediate access to the capital, and the supplier only pays a small fee if they choose to get paid before the date of maturity.
Many industries can benefit from supply chain financing, such as e-commerce, retail stores, manufacturers, automotive centers, and more. When your supplier lets you extend your payment terms because you have a backer like ProFinance, they can get paid earlier or compound their interest. It’s truly a way to access untapped working capital for both small and large businesses.
How To Apply:
1. Complete the short application form
Our application process takes less than 10 minutes, either online or on the phone.
2. Choose the lending option that suits your needs
Our agents will let you know which financing options you qualify for and you can decide which one you want to go with.
3. Access your funds
Complete the online checkout and the money is in your business bank account within 24 hours