Ian Hepworth’s Post

Supplier Finance - we are seeing an increase in demand for supplier finance facilities, both as stand alone funding and as a bolt on to invoice finance facilities. It is a facility used to pay suppliers, as the name suggests. It offers you 120 days credit to repay the facility. It operates like an overdraft and there is no charge when it is not being used. It is often used like a trade finance facility and can be useful when confirmed customer orders are not in place which makes trade finance unsuitable. In a way it acts a bit more like a stock facility. Personal guarantees are required. #business #finance #entrepreneur

Paying suppliers can often be a major cash flow challenge but there are a number of finance options that can assist. Here are some options: 🔹 Trade finance - this is where you have a confirmed order and want to access finance to pay a supplier before the goods are shipped. The key part here is the confirmed order. 🔹 Supplier/Purchase finance - this is similar to trade finance but you don't need the confirmed order. 🔹 Invoice finance - this is where you are borrowing against outstanding invoices issued to customers. This is potentially the cheaper option; however, it is important to understand the timing that you can access the funds. You need to have delivered the goods or service to the customer. You can also use a mix of the above to finance your trade cycle. #business #finance #entrepreneur

Picture this: a thriving exporter faced with escalating costs and the daunting challenge of maintaining a steady cash flow. 💸 🔑 Invoice Finance allows businesses to improve their cash flow by releasing funds tied up in unpaid invoices. This helps to bridge the gap between invoicing and receiving payment, ensuring steady cash flow to meet operational costs and invest in growth initiatives. ⚙️ On the other hand, Purchase Finance enables exporters to finance the purchase of goods, ensuring a continuous supply chain. This eliminates the need for upfront capital and frees up resources to focus on expanding their business and seizing new market opportunities. #FinancialLiquidity #InvoiceFinance #PurchaseFinance #BusinessGrowth https://lnkd.in/drM2Cfbi

Supplier payments can have a real impact on your business and its cash flow. If you are a growing business having to pay suppliers upfront, whilst offering credit terms to customers, you may benefit from a facility to help make payments. Here are some of the solutions available to businesses: 💷 Trade Finance – this revolving credit facility is an excellent solution if you are importing finished goods against confirmed orders. 💵 Purchase Finance / Supplier Finance – this can be used to pay suppliers when there is no confirmed order - essentially, you will be bringing the goods in to stock. 💶 Stock Finance – this can be used to leverage funding against stock that is already in your warehouse. Typically, it is only suitable for larger facilities where there is stock in excess of £1m. It needs to be linked with an invoice finance facility and you need a regular stock turn 💴 Buy Now Pay Later - a short term solution to help pay invoices over a term of up to 12 months - no requirement for PGs or debentures Get in touch if you'd like to learn more. #tradefinance #purchaseorderfinancing #cashflow #workingcapital #supplychainfinance #businessfinance

🚛 Freight factoring is a process that involves you, as a freight company owner, selling your accounts receivable to a third-party factoring company like Little Mountain. 💰You then get an immediate cash advance and we collect payment from your customers when it is due. After that, we pay the balance over to you after deducting a small factoring fee. It sounds simple - and actually, it is! However, there are both benefits and costs involved, which you should be aware of before you sign any agreements.🤝 Read this quick guide to get a good understanding of the basics. https://rpb.li/j1M #FreightFactoring #InvoiceFactoring #TruckingCompany

Supplier payments can have a real impact on your business and its cash flow. If you are a growing business having to pay suppliers upfront whilst offering credit terms to customers, you may benefit from a facility to help make payments. Here are some of the solutions available to businesses: 💷 Trade Finance – this revolving credit facility is an excellent solution if you are importing finished goods against confirmed orders. 💵 Purchase Finance / Supplier Finance – this can be used to pay suppliers when there is no confirmed order - essentially, you will be bringing the goods in to stock. 💶 Stock Finance – this can be used to leverage funding against stock that is already in your warehouse. Typically, it is only suitable for larger facilities where there is stock in excess of £1m. It needs to be linked with an invoice finance facility and you need a regular stock turn 💴 Buy Now Pay Later - a short term solution to help pay invoices over a term of up to 12 months - no requirement for PGs or debentures Get in touch if you'd like to learn more. #tradefinance #purchaseorderfinancing #cashflow #workingcapital #supplychainfinance #businessfinance

#Knowledge #Banking….. Have you heard of reverse factoring? It's a process where a supplier gets financed based on their receivables initiated by the ordering company. This allows suppliers to access better finance terms than they would from a traditional lender. Understanding the distinction between invoice discounting and factoring is crucial. #Factoring involves the outright sale of receivables, while invoice discounting allows companies to sell unpaid invoices to a financial institution and receive a loan with the invoices as collateral. In reverse factoring, suppliers are paid promptly through an agreement between large retailers and banks. This supply chain finance method ensures that when the buyer approves the invoice (account payable) from the seller, the funder advances finance against it. The buyer then settles the funder at the agreed time. This system addresses delays in payment from large companies to suppliers. By partnering with banks, large companies commit to paying owed money to creditors promptly, allowing banks to pay suppliers immediately instead of the usual 30-90 day wait period. #ReverseFactoring #SupplyChainFinance #FinanceTerms #BusinessFinance

Are you having difficulty enforcing your terms of sale? Unfortunately, many accounts payables (AP) organizations have their own agendas that encourage extending terms, despite any previous credit agreement to the contrary. Here's what can be done: https://lnkd.in/emgkuPBs #creditcontrol #receivablesmanagement #cashflow

Calling all suppliers!!! How would you feel if I told you that you could increase the margin on your sales by up to 5% at no extra cost, no extra effort and would have to do virtually nothing new? What would you think if I told you I can help reduce the risk of bad debt on your ledger? What would you say if I told you I could achieve both of these simultaneously and at no extra cost to your clients? You'd probably feel underwhelmed you're about to hear about another impossible to implement strategy, think I was full of it and say there's definitely a catch, it's too good to be true... Well you'd be wrong. My supplier partners take a commission for every referred business that use Moorgate to finance their agreements. I take the headache out of the finance process for my clients by seeing they get paid in full, on time and connect their clients with the right product/lender to suit their needs. I don't want to just tell you about these things, I want to show you. Give me a call now on 07903 191 154 or email me on t.barrington@moorgatefinance.co.uk

Every business has its payment process, and the bigger a business is the more rigid that process becomes. Sometimes 'late' comes out of not properly discussing payment processes up front and assuming that if an invoice is sent with 14 days terms it will be paid as such. Sadly that's rarely the case when dealing with businesses who have fixed payment run dates and a rigid process. I think businesses claim they need X days to run that process, and for some, that will hold true, but for many it will be hiding inefficiencies in individual steps in the process (such as the invoice sitting on someone's desk for a couple of weeks before it gets approved etc). The best way to avoid / plan for these extended terms is to have a frank and open discussion about terms before you ever start doing any work / supplying any goods. That then gives you the choice to accept and go ahead or walk away from the sale. Of course, there will be those businesses out there whose policy it is to only pay on the final demand, but do you really want to work with a business that places so little value on their suppliers? #cashflow #creditterms #paymentprocess #conversations #smallbusiness