Supply Financing

QNB Finansbank

Supply Financing System is a series of solutions that enable suppliers who regularly sell goods and services to corporations and large-scale enterprises to convert the receivables arising from such sales into cash. This way, suppliers can get liquidity any time they need, while buyers optimize their cash flows, liquidity and working capital through more flexible adjustment of maturities with their suppliers.

 These solutions allow the main company involved in the system that buys goods/services and all its suppliers to benefit from collection, guarantee and financing services of the factoring product group:

Parties: We design a model that fits the trade between the main company and supplier in order to optimize cash flow and productivity for both parties.

 

Main company: The company which is also referred to as the buyer or the debtor on the invoice, with a strong financial structure, and committed to its payments, which regularly purchases goods and services in varying quantities and maturities from numerous suppliers through open accounts and/or issuing payment instruments like cheques and promissory notes.

 

Supplier:  The company which is also referred to as the seller or the creditor on the invoice, who regularly sells goods and services to the Main Company, participating in the model as the factoring client, receiving mainly financing services but may also receive guarantee service as per its needs and demand.

 

We prepare products and solutions tailored for our clients' needs and demands by taking into account the following benefits:

Benefits for main companies:

 

Raising working capital through trade finance without having to use loans

The opportunity to make purchase transactions with longer maturities

Providing the supplier with the earlier collection possibility against deferred payments via factoring, and using it as a competitive edge to reduce purchasing costs

Eliminating reliance on cheques and promissory notes as a payment instrument as factoring enables suppliers to get financing via assignment of invoices

Increased operational efficiency increases as all payments are made only to the account of the Factoring Company

As the main buyer offers standard and quick financing to suppliers in need (which is offered at the same financial cost but is quite favorable for all suppliers, given the market conditions), the buyer can enjoy higher competitiveness and negotiation power with suppliers.

Benefits for Suppliers:

 

Quick access to financing without the need for any security thanks to creditworthiness of the main company,

Affordable financing costs determined by the main company’s competitive power

Opportunity to have long-term and lasting relations with the main company

Effective cash flow and balance sheet management thanks to quick financing

Higher sales volumes without the need for additional bank loans

Financing through invoice only

Securing regular financing, without facing the hurdles like financial structure or receivables concentration with respect to bank loans

Monitoring and reporting through the system

The opportunity to conduct purchase transactions with longer maturities

Operational efficiency