Demica || Supply Chain Finance: the benefits of working with Demica

The Benefits of Supply Chain Finance

What are the benefits of working with Demica for:

Buyers?

Suppliers?

Lenders?

Supply Chain Finance enables a company to leverage credit to maximize the efficiency of their working capital and enhance their relationships with their suppliers. The buyer can extend payment terms and the supplier receives advance payments discounted at rates considerably lower than their normal funding margins. The lender, in turn, gets the benefit of a margin higher than the risk profile commands.

How Buyers Benefit

The potential for extended payment terms without burdening suppliers with high financing costs

A reduced working capital requirement resulting from extended payment terms

The buyer’s relationships with their suppliers are enhanced

How Suppliers Benefit

The opportunity to receive early payment of invoices

A reduced working capital requirement resulting from reduced payables outstanding

The ability to better predict payment flows

An enhanced buyer relationship and any future growth with the buyer will require less capital

How Lenders Benefit

Increased buyer financing with enhanced returns

Automatic processing with efficient transparency and visibility of underlying payables

The financier’s relationship with their client is enhanced

Demica's Citadel® Platform

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