Supply Chain Financing
Supply chain financing, also known as supplier finance or reverse factoring, is a financial strategy that allows our clients to improve their cash flow by optimizing their supply chain operations. This involves using our financial network infrastructures to provide early payment to our client’s suppliers in exchange for a discount on the invoice amount.
In a typical supply chain financing arrangement, Equip Up arranges for our financial institution to pay our client’s supplier early, often within a few days of invoicing, in exchange for a discount on the invoice amount. The financial institution collects the full invoice amount from our customers later, typically when the invoice is due.
Our Supply chain financing can benefit both you and your suppliers. For our clients, supply chain financing can help improve cash flow by extending payment terms and reducing the need for working capital. For our client’s suppliers, supply chain financing can provide access to low-cost funding and help improve cash flow by delivering early payment on invoices.
In addition to improving cash flow, Equip Up’s supply chain financing model also helps strengthen relationships between our clients and suppliers by providing a more predictable and stable funding source. By delivering early payment on invoices, our clients help suppliers manage their cash flow and reduce their exposure to financial risks.
Overall, Equip Up’s supply chain financing is a valuable strategy for our customers looking to optimize their supply chain operations and improve cash flow by working closely with their suppliers and our financial partners.