Supplier Finance
Partnership between the Buyer and the Factor aimed at developing an efficient system of purchasing goods from suppliers on credit terms.
Key features:
- NFC undertakes to finance your suppliers regarding the shipments to your company on payment terms up to 120 days, which provides the suppliers with resources sufficient to provide you with necessary credit terms and for required amount;
- NFC primarily assesses your company but not your suppliers. This allows the suppliers to work under simple factoring agreements with NFC and receive financing at special rates and consequently provide you with commercial credit at reasonable value;
- All the factoring document interchange with NFC is carried out in electronic form, that eliminates delays and increase the effectiveness of operations;
- You settle all invoices to the account of NFC, and not to the accounts of hundreds suppliers in different banks. NFC undertakes to monitor the due dates. All this reduces costs of managing your accounts payable.
How does it work?
- Your Supplier forwards to NFC the electronic analogue of an invoices;
- You confirm to NFC that the invoices received in the electronic form are correct (by means of the system “Electronic Factoring”);
- Suppliers send to NFC electronic requests for financing of the invoices to your company and immediately receive 100% of the confirmed invoice amount from NFC;
- Suppliers pay NFC the factoring commission under special rates;
- On due date you settle invoices to NFC account - on long and favorable credit terms.
Advantages for the Buyer
- Suppliers are provided with financial resources sufficient to offer you credit terms for required amount and extended period;
- All payments to one counterpart only - NFC, which undertakes to monitor due dates and conduct settlements with your suppliers;
- Financial resources are provided to your suppliers at special rates. You don’t overpay for commercial credit;
- You can concentrate on the core activity, facilitating the co-operation with your suppliers regarding the settlements of their invoices.
