Vendor Finance

Vendor Finance is a finance solution where suppliers (vendors) offer unsecured funding to buyers (often through a lender-approved program) to help them purchase goods or services without immediate full payment. In this arrangement, the supplier acts as the borrower, supported by trade confirmations from the buyer (Anchor), who may or may not provide a guarantee. This enables suppliers to access credit lines, deferred payment plans, or loans, facilitating smoother business-to-business (B2B) transactions while improving cash flow and enabling buyers to make purchases on favourable terms.

How Vendor Finance Works?

• Buyer (Anchor) advances a purchase order on the Supplier (Vendor) requesting for goods or services.
• The Supplier (Vendor) provide the goods or services & raises invoice on the Buyer (Anchor).
• The Buyer (Anchor) calls funding request from financer based on accepted invoice(s) and due date period agreement with Supplier (Vendor).
• Based on validation of the transaction for parameters like operational limit availability, validity of invoice, etc. financer is instantaneously processing for disbursement by considering the interest parameter into the Supplier’s (Vendors) account.
• On the due date the Buyer (Anchor) processes for repayment to the financer.