Extend terms to keep trade flowing.
Supply chain financing, or supplier credit, optimizes cash flow by allowing larger clients to lengthen their payment terms to their suppliers who currently offer very short payment terms or require cash only.
Supply chain financing programs can also allow clients to take advantage of early pay discounts offered by their suppliers or offer their suppliers early payment programs in exchange of discounts. Global Merchant’s supply chain finance facilities optimizes working capital for clients. Supply chain financing is usually unsecured and clients can have senior lending facilities at the same time.
How it works:
GLOBAL MERCHANT FUND acquires inventory from the SUPPLIER on behalf of the CLIENT.
GLOBAL MERCHANT FUND immediately re-sells inventory to the CLIENT, creating an Accounts Receivable.
CLIENT pays GLOBAL MERCHANT FUND open Accounts Receivable on due date.
Advantages to Clients:
Advantages to Suppliers: