Advantages of Supply Chain Finance

po-financial-services

Supply Chain Finance, or SCF Finance, is a Business-to-Business finance method that enables your company to pay your suppliers or other providers for the goods or services used in generating your  sales.  A company might consider SCF Finance when it receives an order and needs immediate capital to fund its suppliers.  This program provides prompt payment directly to the supplier, and when the finished goods are delivered to the company for resale, the company pays CreateTrade Capital directly. Payment terms range up to 90 days from payment date to the supplier, leaving sufficient time for the company to resell the goods.  The qualification for this SCF program is based upon the approval of our credit insurance provider: Euler Hermes.


Our process works like this: 

  1. Customer sends CTC its Purchase Request.
  2. CTC sends the vendor a Purchase Order and Payment.
  3. Vendor issues a PAID invoice & Shipping documentation naming CTC as the “notify” or “C/O” party.
  4. Vendor ships the goods directly to the Company.
  5. CTC issies an Insured invoice to the Company.
  6. Company pays CTC up to 90 days from payment date to Vendor.

FEATURES & BENEFITS

CreateTrade Capital offers numerous advantages to both importers and exporters, to enable continued flow of business sales and growth.


IMPORTER ADVANTAGES:

  • Take advantage of discounted pricing.
  • Improve payment terms.
  • Grow within a stable working capital cycle.
  • Improve margins by enhancing EBITDA.
  • Enhance debt position with no impact to bank debt ratios.


EXPORTER ADVANTAGES:

  • Increase demand for goods.
  • Reduce trading risk.
  • Increase liquidity.
  • Accelerate cash flow.