The fundamentals of SUPPLY CHAIN FINANCING

The supply chain ecosystem is a complex one – especially for multinational companies that work with suppliers all over the world. The health of a global supply chain isn’t just measured by revenue and profit. A more relevant indicator is how efficiently capital flows between buyers and suppliers. Slow moving capital, much like slow moving inventory, creates unnecessary costs and inefficiencies in a supply chain.

Working capital is critical to every business, but its importance is underscored in an environment that is inherently more susceptible to global and regional economic shifts, industry volatility, geopolitical changes, manmade and natural disasters and many other factors. To be considered high performing, global supply chains must be agile, innovative and competitive in spite of these variables – and all that’s fueled by working capital. Given these factors, it’s no surprise that finance and procurement professionals are seeking ways to more easily access working capital that is trapped in their supply chains.

Enter Wave Crest- we can help your company improves cash flow by optimizing payment terms to your suppliers while providing options for large and SME suppliers to get paid early. However, this is not the only advantage. There are a significant number of reasons why companies should consider supply chain finance, and Wave Crest can tailor-make a solution that fits your needs rapidly, and effectively.



BENEFITS FOR THE BUYER

1. Longer supplier payment terms withouthaving to ‘trade off’ with price – 30-50% Trade Payables increase

2. Off-balance sheet finance and general improvement of the balance sheet

3. Reap early settlement discounts while still paying at invoice maturity

4. Improved process capability in Invoice Receipting, Approving, Electronic Invoicing and overall Procurement

 

BENEFITS FOR THE SUPPLIER

1. Reduction of Trade Receivables and increase in cash position

2. Faster access to cash at advantageous rates

3. Strong cooperation with the buying company creates a competitive advantage

4. Faster cash conversion cycle from delivery to cash