How does it work?
This solution is particularly suited for sellers (i.e. large manufacturers) targeting sales growth and reduced DSO while offering their distributors with extended credit terms as a solution to improve their working capital. Structures can also enable full risk transfer from the seller to the funder.
It reduces the liquidity gap arising between when goods are purchased by distributors and the date they receive funds from end-customers. Allows for the cost of the term extension to be split between large manufacturer and distributors or fully absorbed by either party.
Sales growth, risk transfer
Close liquidity gap
Generate fees based on discounts
Reduce DSO and increase sales
Long term programmatic revenues