Choice of financing either your accounts receivables or payables.
Invoice financing allows businesses to meet their short-term liquidity needs based on outstanding invoices that are yet to be paid to its suppliers.
This provides SMEs with a great short-term financing option with lower interest rates than other short-term financing methods.
It also provides them with immediate funds that can be used to pay for other company expenses.
– Free set up & integration, no monthly platform fees and zero processing fees
Choose to self-fund your own early payment program or work with a funder to implement a supply chain finance programme.
Reverse factoring is a finance solution for businesses that want to be efficient and gain a reputation for reliability. As the name suggests, it works in the opposite way to invoice factoring.
When you receive an invoice for services or goods, it should state when the payment is due. This is usually 30, 60 or 90 days from the date of invoice, depending on your industry. One option is to leave payment right up to the deadline, risking the possibility of you forgetting to pay or having a cashflow shortfall nearer the time.
Another option is to use reverse factoring, where you or your supplier requests for early payment in return for a ‘discount’. This means they are guaranteed to receive the money ahead of schedule in return for a small ‘discount’.
The ‘discount’ should be agreed between you and the lender beforehand, as should the repayment terms and any interest charged with the funder.
NEMO’s reverse factoring program allows buyers to have full flexibility and control to decide if they wish to self-fund their own early payment program or work with a funder to implement a supply chain finance program.
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