FTF QuickPay Can Shift Your Team’s Mentality!

by Jul 1, 2019Factoring, Supply Chain Finance

We tend to talk about the Buyer’s organization frequently and the benefits that they realize utilizing a robust supply chain finance program…but what about the Suppliers? Working with Buyers and Suppliers, FTF Financial Group’s experience indicates that most Suppliers achieve financial benefits that are just as positive as the benefits experienced by the Buyer. Suppliers benefit from receiving payment early, having better visibility into payment processing and having access to working capital that can be invested to grow their business. Suppliers may be even more dependent on this cash flow because they are generally smaller and are operating with less cash availability.

Every company needs working capital without bottlenecks to run smoothly through the supply chain. Suppliers, like Buyers, need cash flow to pay for operating expenses, innovative investment or a cushion to make it through a turbulent or slower economic cycle. There are times the Supplier waits 60+ days for the Buyer to pay for the Supplier’s delivered products or services. Some Suppliers experience angst when their own payroll or accounts payable is due. Buyers tend to have more than one avenue to receive cash flow, whereas a supplier’s alternatives may come at a very high cost or may not exist at all.

With today’s new and innovative technologies, a Supplier has access to the benefits of Supply Chain Finance (SCF). They have access cash flow at a lower cost than a loan (or factoring) by paying a small discount when requesting early payment. Additionally, a Supplier’s loan can negatively impact its debt to equity ratios or other covenants. SCF has no effect on the Supplier’s balance sheet.

FTF Financial Group’s QuickPay program benefits both Buyers and their Suppliers. The Buyer may extend their payables terms and the Supplier is able to access cash early. They both can continue to operate and grow without the working capital draining their business.