Supply Chain Finance

Supply chain financing and invoice discounting are two financing options available to businesses. Here are the key differences between the two:

Supply chain financing focuses on financing the entire supply chain, from suppliers to buyers, and helps businesses manage their working capital needs. It allows buyers to extend their payment terms while ensuring suppliers get paid early, improving cash flow for both parties.

Invoice discounting, on the other hand, focuses on financing specific invoices or accounts receivable and can be used by businesses of all sizes. It allows businesses to obtain financing by using their unpaid invoices as collateral. Typically, the business receives an advance of 80-90% of the invoice value from a financing provider, with the remaining amount paid once the customer pays the invoice.

The choice between supply chain financing and invoice discounting will ultimately depend on the specific needs of the business. Supply chain financing is focused on managing cash flow across the entire supply chain, while invoice discounting is a more targeted solution for businesses looking to access cash tied up in their invoices.

Both supply chain financing and trade finance are financing options that can help businesses manage cash flow and improve their supply chain operations, but they differ in their focus and scope.

Supply chain finance is a funding solution that specifically targets the financing of supply chain activities, including inventory management, procurement, and logistics. It allows businesses to access working capital by using their existing assets as collateral, such as receivables, inventory, and purchase orders. By doing so, it provides the necessary liquidity to optimise supply chain operations and enhance business performance.

Trade finance, on the other hand, focuses on financing trade transactions, including the purchase and sale of goods and services, both domestically and internationally. It provides businesses with a range of financing options, including pre-shipment finance, post-shipment finance, factoring, and letters of credit. By using these financing options, businesses can manage cash flow, reduce financial risks, and take advantage of new business opportunities.

While both financing options provide similar benefits, they are suited to different types of businesses and operations. Supply chain financing is best suited for businesses that want to optimise their supply chain operations, while trade finance is ideal for businesses involved in importing and exporting goods and services.

At Payo Capital, we offer both supply chain finance and trade finance solutions to help businesses improve their operations and financial performance. Our team of specialists can work with you to identify the best financing options for your business and provide expert guidance throughout the process. Contact us today to learn more about our financing solutions.

Supply chain financing and factoring are two financing options available to businesses. Here are the key differences between the two:

Supply chain financing: Focuses on financing the entire supply chain, from suppliers to buyers, and helps businesses manage their working capital needs.

Allows buyers to extend their payment terms while ensuring suppliers get paid early, improving cash flow for both parties.
Factoring: Focuses on financing specific invoices or accounts receivable and can be used by businesses of all sizes. Involves a business selling its accounts receivable or invoices to a third-party factor at a discount.

Allows businesses to obtain financing without taking on debt, as the factor assumes the risk of collecting payment from customers.

Ultimately, the choice between supply chain financing and factoring will depend on the specific needs of the business.

While supply chain financing is focused on managing cash flow across the entire supply chain, factoring is a more targeted solution for businesses looking to convert their accounts receivable or invoices into cash without taking on additional debt.

If you run a good business, that’s been operating for more than 6 months, and you have an active ABN or ACN — we will be in a good position to assist you.

Depending on the type of funding solution you require, the specifics may vary. Talk to our team about which of our funding options can be best used to strengthen your business.

For short-term cash injections, such as selective invoice finance requests, then you will simply need the unpaid invoices and be authorised to engage on behalf of the business.

Speak to our team, and we will be more than able to assist and advise, based on your circumstances.

We offer two streams of funding: Fast Track Finance and Custom Built Solutions.

Designed for SME businesses, our Fast Track Finance allows you quick access to funding from $10K up to $500K.

We specialise in providing fast and flexible funding solutions for businesses through our range of finance facilities, including Invoice Finance, Supply Chain Finance, Trade Finance, and Business Loans.

With our streamlined application process, we can give you an indicative offer within just 24 hours and get funding to you in as little as a week.

For businesses that need larger amounts of funding — $500K-$2M — we offer bespoke finance options through our Custom Built Solutions. Our team will create a finance facility that best suits your business within 2-3 weeks.

For businesses requiring fast access to larger funds, we can offer a combination of the two streams — by providing pre-approval up to $500K — in order to assist you to get the funds you need sooner. To get the ball rolling, get in touch with our team.

To start this process, simply get in touch with our team, or complete an application online.

Standard requirements are:

– ABN or ACN

– Financial documents

We only ever ask for the documentation we need in order to assess your business’ circumstances.