Once the invoice/receivable data has been uploaded to the supply chain finance platform, the due date (maturity date) listed is the date the supplier will receive payment unless they choose to be paid early. There is no longer any question as to the date of payment. This creates added transparency and increased cash flow visibility.

 There are two reasons why supply chain finance is better than direct lending. First, the interest rate a supplier will pay for a loan will most likely be much higher than the discount/finance fee paid in a supply chain finance scenario. That’s because supply chain finance funding is based on the customer’s credit rating rather than the supplier’s (which tends to be higher given the financial health of largest, multinational buyers).

Early payment programs, like dynamic discounting, are buyer-initiated programs where buyers offer suppliers a discount on invoices in exchange for early payment. That means suppliers get paid less than they would in a supply chain finance scenario. Factoring works in a similar way. Suppliers sell their invoices to a bank in return for earlier, but partial, invoice payment. The interest rate charged is based on the supplier’s typically lower credit rating and all factored receivables count as debt.

Once suppliers accept the invitation to participate in a buyer’s supply chain finance program, the rest is easy. They will be directed to a customized cloud-enabled platform powered by Finance Seva to complete registration and submit the required financial documentation.

 Finance Seva will train the supplier’s team on how to use the cloud-enabled platform to submit and select invoices for early payment, as well as how to get the maximum benefit from the program. The platform is highly intuitive and easy to use.

Suppliers only need to make a small time commitment to participate in their customer’s supply chain finance program.

No change in accounting processes or IT infrastructure is required. All that is needed to participate is access to a web browser. The registration and onboarding process is easy and doesn’t require any investment in software or technology. Simply login, select invoices for early payment – and get paid.

No. There are no additional costs or fees. A nominal discount (fee) is applied only when a supplier selects early payment. Suppliers are able to get paid on their own terms to help unlock working capital.

No, you have complete control over which invoices are submitted for early payment. You can select all, some or none of your receivables for trading.

Finance Seva uniquely provides electronic time drafts, a patent-pending legal solution that allows banks to purchase a trade draft from the Finance Seva platform without the requirements of lien searches and release issues. Electronic trade drafts are already in use by thousands of suppliers.