Vendor Finance – Capsave Finance
SCF – Vendor Finance (Transaction Flow)
- 1. Corporate issue purchase order
- 2. Capsave Customer Delivers Goods
- 3. Capsave Customer Invoices Buyer
- 4. Corporate approves invoice for payment and send confirmation to bank
- 5. Capsave Customer offered early payment required
- 6. Capsave Customer accepts early payment
- 7. Capsave Finance funds early payment to supplier
- 8. Corporate makes payment on original due date or extends payment terms
Vendor Finance Program Benefits
- Trade Payable to Supplier. Not Bank Debt.
- No Credit Documentation
- No Financing Cost
- Facilitates dialogue with Suppliers for negotiation of commercial terms
- Supports strategic supplier relation
- Scalability – Supports growth in suppliers and transactions over a long term period.
- Improves Cash Flow / Liquidity
- Monetize receivables
- Reduces dependence on Local Bank
- No collateral required
- Competitive Pricing – Leveraging on Corporate ’s credit rating
- Simple Standard documentation
- Encourages vendors to take up new business opportunity without waiting for advances
- Facilitate additional working capital funds
