Supply Chain Funding

Improve Your Working Capital Position

Supply Chain Finance

The key concept behind supply chain finance is to pay your suppliers as quickly as possible in order to take advantage of early settlement discounts. In simple terms, it allows the buyer (you or your business) to pay later and the supplier to secure payments earlier, allowing both parties to improve their working capital position.

Through having a range of financing alternatives,IGA can assist the supplier and/or the reseller in overcoming many of the difficulties normally associated with financing.


Predictable Payment Schedule

Faster Access to Cash

No Security Required

Supply Chain Finance FAQ’s

What is supply chain finance?

Supply chain finance, also known as supplier finance or reverse factoring, improves cash flow by allowing businesses to optimize their payment terms to their suppliers while providing the option for their large and SME suppliers to get paid early. This results in a win-win situation for the buyer and supplier. The buyer optimizes working capital and the supplier generates additional operating cash flow, thus minimizing risk across the supply chain.

How does supply chain finance work?

Supply chain finance offers suppliers a way to accelerate their own cash flow. Suppliers participating in a supply chain finance program have the option to get paid early – typically as soon as an invoice has been approved by a buyer. The supplier can accelerate payment on some, all or none of their receivables, depending on their financial position and funding requirements. For those receivables that are paid early, the supplier will pay a small finance charge or discount. Since the buyer is the obligated party, financing is offered to the supplier at rates that are typically more favorable because they are based on the buyer’s credit history and rating. For many suppliers, this access to a lower cost of funding is exceptionally important.

All of this occurs without negatively impacting either companies’ balance sheets. Accounting treatment for supply chain finance, when done properly, does not count as additional debt for a buyer or supplier.

Do I have to change the way I invoice today?

No change is required. The existing process a supplier performs to invoice the buyer remains in place.

As a supplier, how quickly do I get paid?

The funds will be electronically transferred to the supplier’s bank account in as quickly as 24 hours after approval.

How long does it take on average to set up a supply chain finance program?

On average, it takes 90 days for companies to implement a program. However, this varies depending on the alignment and resources of the buyer implementing the program.

Looking for more information? Reach out to one of our specialists Click Here

Looking for Supply Chain Finance? Apply Now.

Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Consent to display content from Youtube
Consent to display content from Vimeo
Google Maps
Consent to display content from Google
Consent to display content from Spotify
Sound Cloud
Consent to display content from Sound