SME Capital Finance helps suppliers fund growth by linking the availability of working capital to the additional business it can win. This allows suppliers to tender for contracts that they otherwise may not be able to fulfil.
Working capital is made available to the supplier at the point when it is needed most: when the purchase order has been awarded. The advance can be up to 50% of the value of that order and allows the supplier to fund raw materials and other input costs.
Costs compare favourably to other traditional and alternative forms of financing, including invoice financing.
Suppliers can choose which purchase orders they wish to finance and how much of the contract value they wish to borrow. Purchase Order Finance enables them to manage seasonal cash flow needs efficiently.
Purchase Order Finance is suitable for suppliers from all business sectors – and does not require security from the supplier or personal guarantees from the directors.
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