Is a Supplier Credit Facility Right For Your Business?

Sometimes companies find themselves in need of additional credit to purchase inventory or goods for resale. At times an entrepreneur may need help filling a purchase order of a customer or paying an invoice to a supplier. A Supplier Credit Facility (also referred to as supply chain finance) can offer the capital or credit needed for a small or medium sized businesses to run efficiently.

Under a Supplier Credit Facility a company can purchase goods on open terms. This type of accommodation helps in cases when more traditional Purchase Order Financing may not apply or other assets may not be available to leverage under a standard Asset Based Loan or Accounts Receivable Factoring agreement.

With access to a Supplier Credit Facility a company can rest assured that it has access to the trade credit it needs to be successful. A business no longer has to hesitate when taking on large orders or stop shipping because of a lack of inventory. Here we list the top benefits and use cases for a Supplier Credit program.

 

Benefits of Supplier Credit FacilitiesSupplier Credit Facility

  • No UCC filing or lien required (most situations)
  • No long term factoring agreements
  • No long term loan contracts
  • Quick turnaround and easy to set up
  • Works in conjunction with other lenders.

Why  use a supplier credit facility?

  • To fill existing purchase orders from customers
  • To purchase inventory for resale to customers
  • To purchase supplies for company consumption
  • To qualify for credit terms within your existing supply chain

Apply For a Supplier Credit Facility Today

Ready to apply for a Supplier Credit Facility today? If you are in need of additional inventory for resale or goods for consumption reach out to Star Funding today. Speak with a Star Funding representative to learn more about how we can help you grow your business.