Distributor finance funds a manufacturer's dealers to hold stock until their own customers pay
Distributor finance funds a large manufacturer's distributors to hold goods for resale until their own customers pay. It is secured on stock and receivables and often backed by the manufacturer through stop-supply, buy-back or risk sharing undertakings.
Dynamic discounting lets buyers earn a return on their own cash by paying suppliers early
Dynamic discounting lets a buyer pay suppliers early out of its own cash, at a discount that shrinks as the due date approaches. The US Treasury's public test: take a discount only when its yearly rate beats the value of funds rate.
Inventory finance funds goods in storage, and the finance provider holds title until it is repaid
Inventory finance pays for goods held for sale. A finance provider advances part of their value, holds title or security over them with inspections and insurance, and releases title when sale proceeds repay the advance.
Supplier terms fund importers, and an early payment discount has a price to test against the cost of funds
Open account terms of 30, 60 or 90 days let an importer receive goods before paying. A discount for paying early can be turned into an annual rate and compared with the importer's own value of funds, the test the US Treasury sets for federal agencies.
Longer payment terms hold up when suppliers can get paid early on the buyer's credit
Payables finance lets a supplier on longer payment terms sell its approved invoice early, at a cost typically aligned with the buyer's credit, while the buyer still pays on the original due date.
Payables finance pays suppliers early on the buyer's credit, while the buyer still pays on the original due date
Payables finance is a buyer-led program in which suppliers sell invoices the buyer has approved to a finance provider, at a discount priced on the buyer's credit. The buyer still pays the full invoice on the original due date.