Subscribe to our monthly Ledge Bulletin for the latest in WA business news

UPDATE: Supply Chain Finance

  • Home »
  • News »
  • UPDATE: Supply Chain Finance

Supply Chain Finance

In our Bulletin on 31st December 2017, we wrote on the impending release of a new product in the Supply Chain Finance space. This product has now been released to the market through a limited number of intermediaries.

Are you a supplier who struggles to keep a positive cash flow because you’re waiting for clients to pay? Or maybe you’re a client who struggles to pay your supplier within payment terms because you’re unable to maintain a working capital?

If your answer is yes to either of the two questions, Supply Chain Finance (SCF) may be the facility for you.

SCF is a new technology driven finance solution built for SMEs and corporate businesses who are looking at more innovative ways to work with their suppliers.

Its purpose is to help the client and the supplier manage their supply chain accounts; providing the capability to receive early payment, whilst also trading on the terms they want.

SCF is powered by a secure online system which allows clients to approve supplier invoices for payment using an off-balance sheet facility limit, whilst at the same time as being able to extend their own terms.

What’s in it for the client?

  • Increase revenue via profit-sharing arrangement
  • Extended credit terms
  • Improve financial health of supply chain
  • No borrowing and no security required

What’s in it for the supplier?

  • Improve cash flow
  • Access early payment on demand
  • Eliminates paperwork and contracts
  • Non-recourse, non-debt cash payments

At Ledge, we are able to source the most suitable and effective product for our clients’ individual needs which is why we are extremely excited about this new finance facility. It will be interesting to see what the working capital space will look like with SCF helping both the supplier and their client to release working capital tied up.

If you have any questions or would like to set up a day/time where we can come out to you and provide more information contact your Ledge Finance Executive directly or simply call 6318 2777