Option 1: Early Payment to Buyer

This type of Supplier Finance is also known as Reverse Factoring. It applies to a relationship between 1 Buyer and multiple Suppliers. The Buyer has agreed trade terms with the Suppliers, normally 30-60 days.

FACTS can provide Early Payment to the Suppliers but needs the cooperation of the Buyer for invoice authentication. The Supplier pays interest and fees, and we call this product SuPa [Supplier Pays].

  1. Supplier delivers to Buyer
    • .. and issues an invoice or GRN
    • .. Buyer has negotiated 60 day terms
  2. Invoice is uploaded onto the FACTS Supply Chain Finance platform
  3. After invoice verification, FACTS pays the Supplier – but deducts charges and 60 days interest
  4. FACTS collects the nominal invoice value on the invoice due date from the Buyer

Option 2: Late Payment to Suppliers

A variation on Supplier Finance. In this case it’s actually the Buyer that needs to pay Suppliers cash-on-delivery, and consequently faces pressure on liquidity and working capital. On behalf of the Buyer.

FACTS will pay the Suppliers what they are due and collect from the Buyer after 30-60 days. The Buyer pays interest and fees, hence we call this product BuPa [Buyer Pays].

  1. Supplier delivers to Buyer
    • .. and issues an invoice or GRN
    • .. terms are cash-on-delivery
  2. Buyer uploads the Invoice onto the FACTS Supply Chain Finance platform
    • .. and submits a Late Payment Request
  3. FACTS pays the Supplier the nominal invoice value [now]
  4. At day 60, FACTS collects the nominal invoice value plus interest and charges from the Buyer