What are the benefits of working with Demica?

Supply chain finance - SCF - enables a company to leverage credit to maximize the efficiency of its working capital and enhance its relationships with 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 do buyers benefit from Supply Chain Finance?

• Supply chain finance  (a form of asset based lending) creates the potential for extended payment terms without burdening suppliers with high financing costs
• Asset based lending creates a reduced working capital requirement resulting from extended payment terms
• Supply chain financing (ireverse factoring) helps enhance the buyer’s relationships with their suppliers

How do suppliers benefit from Supply Chain Finance?

• Supply chain financing creates the opportunity to receive early payment of invoices
• Supply chain financing creates a reduced working capital requirement resulting from reduced payables outstanding
• Supplier finance / vendor finance (i.e payables financing) gives the ability to better predict payment flows
• SCF payables financing creates an enhanced buyer relationship and any future growth with the buyer will require less capital

How do lenders benefit from Supply Chain Finance?

• Supply chain finance leads to increased buyer financing with enhanced returns
• Asset based lending involves automatic processing with efficient transparency and visibility of underlying payables
• Payables financing through supply chain finance paves the way for an enhanced relationship between the financier and their client