Value Chain Finance

Value Chain Finance

Value Chain Finance is a financing mechanism whereby a supplier to a larger customer is able to receive faster payment of invoices raised that is supported by the strength of the buyer`s business as security for the lender. FMC (the funder) takes comfort in the strength of the buyer’s business.

Benefits For The Buyer

  • Stable Supply Chain: Suppliers are able to provide a consistent service to the buyer.
  • Finance Costs: The Supplier, not the Buyer is charged for early payment of invoices.
  • Increased Liquidity: Buyer has the potential to extend payment terms.

Benefits For The Supplier

  • Improved Efficiency: Fast access to their receivables as soon as services are approved.
  • Cash Flow Control: Suppliers are left in control of their cash flow.
  • Good Credit Rating: Suppliers are no longer hampered by their credit ratings.
  • Flexibility: Faster payments need only be drawn down as and when needed.
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