Supply chain financing, or supplier credit, optimizes cash flow by allowing larger companies to lengthen their payment terms to their suppliers who currently offer very short payment terms or require cash only.
TFS’s Supply Chain finance facilities optimized working capital for clients and allows for clients to extend payments on supplies at no cost to the supplier. Supply Chain Financing is usually unsecured and clients can have senior lending facilities at the same time.
TFS acquires inventory from the SUPPLIER on behalf of the CLIENT.
TFS immediately re-sells inventory to the CLIENT, creating an Accounts Receivable.
CLIENT pays TFS open Accounts Receivable on due date.
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