Can Debtor or Trade Finance Work In Conjunction With Another Financier?
If you already have a Debtor Finance facility in place with another financier, can we still provide you with the Trade Finance?
Yes, yes we can!…Sometimes.
Find out how in the video (or read the transcript) below.
Hi, I’m Daniel from AR Cash Flow, and today we’re going to talk about an
often-asked question and that is: “If I have existing facilities with a
bank or another factor or another debtor financier, can AR Cash Flow still
fund my purchase order finance?”
Well, the answer to that is yes. If you’ve got purchase orders from
existing customers and you want to finance them, and your factoring or your
debtor finance is not enough, we can put a facility in place for you,
whereby you give us a couple of your purchase orders. We then fund those
purchase orders. We make sure the stock gets delivered straight through to
your customer as normal.
Once your customer receives those goods, they pay your factor as per
normal, your invoice financier. But instead of your invoice financier
giving the advance to you, they provide the advance to us in relation to
those goods, and once they’re paid out, then they start releasing money
back to you again.
That’s how purchase order finance works in conjunction with external
financiers. If you’d like an appointment with our office, please give us a
call on our 1300 number, and thanks for watching.