Reverse Factoring is a form of receivable financing in trade finance whereby a buyer arranges for the financing of invoices raised on him by a supplier. Reverse Factoring is very similar to traditional factoring with the noticeable difference of the buyer being the arranger of the facility rather than the supplier as in traditional factoring. This feature does have some impact on risk, pricing, adaptability...
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Purchase Order financing is gaining popularity as an innovative tool that allows companies to get cash advances from financiers against certain Purchase Orders. This allows the company which might be short on cash to borrow the funds required to purchase supplies required to manufacture goods rather than use their cash. Purchase Order financing differs from factoring or invoice financing in the sense that it provides...
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Managing International money transfers can prove to be challenging for some companies doing it for the first time. There are regulations, cost considerations, credit risk, etc. to consider while also ensuring that a trust-based relationship may eventually be established with the trading partner....
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Supply Chain Finance was created to provide a reliable, quick and tailored financing solution that may be applied across a company's entire supply chain. How Supply Chain Finance differs from other traditional forms of financing is that it is usually in the shape of a consistent template that once structured, may be applied to all channel partners in an expedited fashion....
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Invoice discounting is a popular and widely used tool for companies to better manage their cash flow positions. The basic concept of invoice discounting is that it allows a company to take a loan against its Accounts Receivables (AR) or unpaid sales invoices....
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Global Supply Chain Finance has made deep inroads in various parts of the world as a preferred method of funding international buyers and suppliers....
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When it comes to Supply Chain financing, there are many options a company can use to collaborate with their suppliers. On one occasion I was lucky enough to see an example where a large manufacturer was able to use their Banking relationship and solid balance sheet to help some of their suppliers finance the large orders....
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