Supply Chain Finance – its like Invoice Finance in Reverse

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I received my copy of CIMA – Excellence in leadership Issue 1 2012 today and I have been reading all about Supply Chain Finance.

I hadn’t heard of it before, the article explains how businesses like Travis Perkins have been working with Santander to find a way to help their suppliers.

Santander offer to pay the suppliers immediately for a fee and the client (TP) pays on their normal trading terms, this is better for the suppliers than factoring because it improves their working capital position and based on the article the fees are cheaper than factoring.

Its good for the client because they aren’t borrowing money either, but the client needs to have a good credit rating. Here is link for more details:

http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223417457873&cachecontrol=immediate&ssbinary=true&maxage=3600

Have you used this type of finance? do other banks offer it?

steve@bicknells.net

Published by Steve Bicknell

Progressive Property Approved Accountant, Business Expert and Trainer/Speaker with Redcliffe Training, MBL Seminars and UK Training ►MD ► Bicknell Business Advisers ✸ family business providing accountancy, tax, and consultancy services to SME's and Start Ups - Xero, Sage One, QuickBooks, Freeagent, Kashflow, Hammock, Dext - Receipt Bank ✸ www.bicknells.net www.stevejbicknell.com

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One thought on “Supply Chain Finance – its like Invoice Finance in Reverse”

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