Businesses looking to stabilize their current supply chain model will immensely benefit from supply chain financing by freeing up their working capital.
Suppliers face a major problem when buyers delay their payments for weeks or even months in some cases. Besides this, there is always a risk of buyers not giving them full payment on maturity of the invoice. Suppliers can seek CapoFin’s advantage to get funds immediately upon shipment thereby benefiting from immediate cash flow and also eliminating risk of delayed payment or non-payment against their invoices.
CapoFin arranges trade finance from its lending partners (trade funds and FIs) to small and medium sized companies engaged in domestic or cross-border trade across the globe using technology and data analytics.
Importer sends a purchase order (PO) to the Exporter
Exporter invoices the Importer noting CapoFin's lending partner as the “bill to” party
Exporter ships goods to the Importer as per agreed PO terms
Importer uploads required shipping documents on the Lender's portal
Lender advances up to 100% of shipment value within 1-2 days
Lender collects financed amount from the Importer on due date as per agreed terms of repayment
CapoFin’s Finance for Importers is a pre-shipment financing facility for domestic and cross-border transactions. This means that CapoFin’s lending partners pay on behalf of the buyer to the seller providing the buyers with access to funds immediately.
CapoFin’s lending partners take over the supply chain requirement of the buyers and in certain cases can be up to 100% of the Purchase Order. CapoFin’s Finance for Importers is a collateral-free financing instrument for buyers.
Through Import financing (Supply Chain Financing), CapoFin helps suppliers to get paid on time, ensuring buyers get their products delivered in full and on-schedule. This enables global businesses and supply chains to maintain cash flow and operate seamlessly.
- The lending partner will take on the responsibility to look after your payables which allows you to focus on the core activity of your business, sales, manufacturing etc.
- Your supplier receives immediate liquidity prior to shipment
- You do not have to pledge any collateral
- The financing is indeed ‘off-balance sheet’
- Financing for Importers can also help businesses grow their trade and fulfil supplier payments without having to worry about the supply chain and cash flow cycles
- Such type of financing will enable long-term relationship between you and the seller
- Allows you to seek advance payment discounts with the suppliers
- Promotes competition and diversity amongst suppliers
Yes, the balance amount which is due under the trade can be financed.
Yes, CapoFin’s network of lending partners include pre-shipment and post-shipment financiers.
It varies from case-to-case as CapoFin’s financing network is spread across globally.