• Payables finance solutions

Our supply chain finance solutions help both buyers and suppliers protect their supply chains and optimise their working capital

Supply chain finance

Supply chain financing is a generic term that typically covers the financing of open account transactions along the supply chain from development to distribution. Enabling accessible financing along the entire physical supply chain ensures exponential benefits to all entities involved in a trade transaction.

Receivables discounting

Sellers of goods and services sell individual or multiple receivables (represented by outstanding invoices) to a finance provider at a discount (synonyms include Receivables Finance, Receivables Purchase, Invoice Discounting).


The without recourse purchase of future payment obligations represented by financial instruments or payment obligations (normally in negotiable or transferable form), at a discount or at face value in return for a financing charge (synonyms include without recourse financing, discounting of promissory notes/bills of exchange). The term “forfait” comes from the French expression to “relinquish a right”. In the context of forfaiting, the exporter will relinquish their rights to receive the proceeds on the due date in return for an immediate payment, at an agreed interest rate for the discount, and thereby pass all risks and responsibility for collecting the debt to the forfaiter.


Sellers of goods and services sell their receivables (represented by outstanding invoices) at a discount to a finance provider (commonly known as the ‘factor’). A key differentiator of factoring is that typically the finance provider becomes responsible for managing the debtor portfolio and collecting the payment of the underlying receivables (synonyms include receivables finance, invoice discounting, debtor finance). The factor takes on the credit control and debt collection, and advances funds to the seller prior to maturity. The seller informs the buyer that the invoice has been transferred to a factor and sends copies of invoices to the factor (although the factor may issue the invoices on behalf of the seller). This is primarily without recourse with up to 90% of invoice value advanced. ‘Two-factor international factoring’ is when the seller’s domestic factor uses a local factor in the country of the buyer.

Payables finance

A buyer-led programme within which sellers in the buyer’s supply chain are able to access finance by means of receivables purchase. The technique provides a seller with the option of receiving the discounted value of receivables prior to the actual due date and typically at a financing cost aligned with the credit risk of the buyer.

Loan or advance against receivables

Financing made available to a party involved in a supply chain on the expectation of repayment from funds generated from current or future trade receivables (synonyms include receivables lending, receivables finance, trade receivable loans).

Distributor finance

Financing for a distributor of a large manufacturer to cover the holding of goods for re-sale and to bridge the liquidity gap until the receipt of funds from receivables following the sale of goods to a retailer or end-customer (synonyms include buyer finance, dealer finance, channel finance).

Loan or advance against inventory

Financing provided to a buyer or seller involved in a supply chain for the holding or warehousing of goods (either pre-sold, un-sold, or hedged) and over which the finance provider usually takes a security interest or assignment of rights and exercises a measure of control (synonyms include inventory finance, warehouse finance, financing against warehouse receipts).

Pre-shipment finance

A loan provided by a finance provider to a seller of goods and/or services for the sourcing, manufacture or conversion of raw materials or semi-finished goods into finished goods and/or services, which are then delivered to a buyer (synonyms include purchase order finance, packing credit finance).

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