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Flexible Settlement

Demica's platform caters for different forms of Supply Chain Finance as alternatives to or in combination with traditional reverse factoring in order to better fulfil the financial needs of Buyers.

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How do these work?

Early Settlement

Early Settlement enables a Buyer to improve its P&L by automating the process of early settling invoices that offer discounts for prompt payment or those that have been assigned to a funder. This structure can be offered in combination with any other payables finance solutions including payment extension.

Download Early Settlement Information

Payment Extension

Under Payment Extension, the Buyer does not renegotiate commercial terms with its suppliers who continue to be paid under current terms but instead seeks for a delay in the payment of the invoices beyond maturity to a financial institution. This structure can be applied to both discounted and non-discounted invoices.

Download Payment Extension Information

Benefits

Improve P&L

Increase available cash flow

Fully automated

No impact on supplier payment terms

Further enhances other forms of Supply Chain Finance

Extension cost can be subsidised if combined with Early Settlement

Success Factors

A thorough understanding of Buyer's business objectives is required to identify the optimal structure.

Accounting implications

Understand the accounting implications of extending payment terms through this structure

Buyer analysis

To understand objectives on P&L, balance sheet or both

Supplier selection strategy

Define which suppliers' invoices should be allocated to Payment Extension, Early Settlement, Approved Payables Finance or a combination of these

Thought leadership