Home > Uncategorized > Supply chain finance. The future?

Supply chain finance. The future?

supply-chain. Working hand in hand with a new lender in the market, I have been exploring potential clients for Supply Chain Finance

What is Supply chain finance you may well ask? In simple terms it is where the supplier is able to receive immediate settlement on its invoices from the client but at a cost of course. However because the lending is effected by the client rather than the supplier, the terms are often advantageous compared with standard invoice financing. This is because the client is frequently larger in scale and net worth and thus able to obtain much stronger terms. This has also been referred to as “reverse factoring” and a more detailed explanation can be read here

Of course, as is ever the case in finance, this is not always suitable for all parties and its my role to advise and assist

So how do we find potential clients?

My partner in this has made some astute observations which has narrowed the search but my input was based upon tracking the payment trends for a group of businesses in a certain sector. I have tracked their creditor days over six years and clearly a declining trend or simply plain bad figures are more likely to lead to frustrated suppliers who in turn are more likely to buy into such an arrangement

Clearly there are other factors but I am not inclined to divulge on line. However the key aspect to this is the very nature of marketing

Targeting is so very important. As we have found, it has taken numerous questions and discussions to hit upon what we believe is the right formula and this applies to any business and their markets

Once that is determined, then I use the data available from a very particular source

Again I am certainly not going to give all way but if you wish to know more, give me a call or drop me a line

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