A cheaper form of short-term working capital for supply chains. Invoice Discounting is one of the financing methods available to supply chain businesses through supply chain finance. With invoice discounting, suppliers and vendors of corporate buyers can easily convert their pending invoices into instant cash. Invoice discounting is essential in supply chains to avoid working capital shortages resulting from the payment terms of corporate buyers. Due to their high credit rating, low risk of default, large balance sheets and the need to also manage their cashflows, large corporate buyers have standard payment terms of between 15-90 days. This poses a major cash flow challenge to the suppliers who are usually SMEs.
Most supply chain businesses have been in this challenging position multiple times: a purchase order has been fully executed and the corresponding invoice submitted to the corporate buyer. Then the reality hits the business; we have to wait for 60 days* before receiving payment. Salaries have to be paid during this period, more purchase orders have to be executed. What can be done to solve the working capital shortages faced by these local suppliers and vendors?
A.) Apply for a bank loan that will take weeks to be processed, submit numerous documents, frequent visits to the bank branch and require physical collateral?
B.) Get an invoice discounting facility from a company that has digital invoice discounting products designed for supply chain businesses facing such challenges?
The answer will be B and Exin Versa is the company that can conveniently helps your business receive early payment on your pending invoices. Exin Versa is a Nigerian supply chain fintech that helps local suppliers solve their working capital challenges.
Our digital platform makes it easy to receive early payment on your pending invoices. Supply chain businesses can also make use of our digital invoice creation tool for free. We evaluate invoice discounting facility requests differently which means that you can receive payment in 24-48 hours. Most local suppliers do not possess detailed credit histories and physical collateral but have a strong business relationship with their corporate buyers. local suppliers. Exin Versa allows local suppliers to leverage the strength of their supply chain relationships to get early payment on their invoices at affordable interest rates.
*payment terms of corporate buyers typically range from 15-90 days.