Goodman Corporate

What is Supply Chain Finance?

Supply Chain Finance is a set of technology-based solutions that optimize cash flow by allowing businesses to extend their payment terms to their suppliers while providing the option for their suppliers to get paid earlier.

This financial solution is critically important for companies looking to improve their working capital and maintain good relationships with suppliers. They can strengthen their supplier relationships and optimise cashflow without risking disruption to the supply chain.

How Does Supply Chain Finance Work?

Supply Chain Finance typically involves three main parties: the buyer, the supplier, and a financial institution or a third-party platform. The transactions typically flow like the below example:

Purchase Order: The buyer issues a purchase order to the supplier.

Invoice Submission: Once the goods or services are delivered, the supplier sends an invoice to the buyer.

Approval Process: The buyer approves the invoice, confirming that they will pay the amount due.

Early Payment Option: The approved invoice is then submitted to the financial institution or platform, which provides the supplier with the option of early payment. The supplier can choose to get paid earlier than the due date, often at a discount.

Payment: On the due date, the buyer pays the financial institution the full invoice amount.

What Are The Benefits?

For Buyers

Improved Cash Flow: Buyers can extend their payment terms without negatively impacting suppliers, freeing up working capital for other business needs.

Strengthened Supplier Relationships: Offering early payment options can help maintain strong, positive relationships with suppliers by ensuring they have access to necessary funds.

Reduced Supply Chain Risk: By supporting suppliers financially, buyers can reduce the risk of supply chain disruptions.

For Suppliers

Accelerated Cash Flow: Suppliers can receive payments earlier than the invoice due date, which helps in managing their cash flow more effectively.

Lower Cost of Capital: The financing cost in SCF is often lower compared to traditional borrowing, as it is based on the creditworthiness of the buyer.

Increased Financial Stability: With more predictable cash flow, suppliers can plan and manage their operations more efficiently.

Why Choose Us?

Experience

We have been trading for over 18 years, you are in experienced, professional hands.

We have handled transactions from as little as £25,000 through to £60,000,000 with more than £3 billion funded across UK SME's to date

Leaders

We are leaders in the commercial finance broker field within the UK.

Our Founder and Chair was the Chair of our National Trade Body for over 10 years, he knows what good looks like and leads from the front when it comes to all aspects of commercial finance.

Expert Guidance

Our expert guidance puts you and your business at the centre of what we do.

With our gold standard, “hand-held, and cradle to grave” service, you’ll be looked after right through from the initial inquiry until your funds are released.

Business Owners

We understand the struggles and priorities of running a business, we are business owners ourselves.

Why not let us deal with the paperwork and sourcing finance while you deal with your day-to-day operations?

Goodman Corporate Finance is a trading style of Goodman Corporate Consultancy Ltd. Company no 5364029.

Goodman Corporate Finance is an independent commercial finance brokerage and not a lender. We may receive payment from the finance provider should you decide to enter into an agreement with them. Goodman Corporate Consultancy Ltd is Authorised and Regulated by the Financial Conduct Authority under number 733340. Goodman Corporate Finance is registered with the ICO no. Z1828753.

Supply Chain Finance