What is it;
The Supplier Finance System is a financial instrument that enables suppliers who regularly provide goods and services to corporate and large commercial scale companies to achieve liquidity when they need it by discounting their receivables arising from the sales they make to these companies, while at the same time enabling buyer companies to optimize their cash flow, liquidity and working capital by adjusting payment terms more flexibly with their suppliers.
The Parties;
Buyer Company:
A company that regularly purchases goods and services from a large number of supplier companies in different volumes and maturities by issuing payment instruments such as open accounts and/or cheques and bills, which is also referred to as the buyer company or invoice debtor company, which has a strong financial structure, depends on payment commitments.
Supplier Company:
A company that is also referred to as a vendor company or invoice creditor company, that is included in the model as a factoring customer and that mainly uses the financing service from factoring services, but can also receive warranty services according to needs and demands, and regularly sells goods and services to the buyer company.
Factoring Company:
A financial company that optimizes cash flow and efficiency for both parties by modeling the trade between the buyer and seller companies.
Advantages;
Thanks to the high credibility of the buyer, it ensures that the supplier also obtains an affordable financing cost.