Supply Chain Funding

• The supplier issues an invoice to the buyer.

• The buyer confirms that the invoice has been approved for payment to the lender.

• The supplier gets the value straight away (minus a small fee).

• When payment is due, the buyer pays the lender.

• In this way, the supplier's cash flow is stabilizedbecause they get paid within a few days, rather than waitingfor the expected 'payment due date (which could be as long as 120 days).

• Meanwhile, the buyer simultaneously benefits because they have effectively extended their payment terms without negatively impactingtheir suppliers. After all, if the lender takes the payment delay, the supplier gets paid within a few days, and the buyer's working capital is untouched until their extended paymentterms are over.