A form of asset-based financing and is the process of selling supplier’s accounts receivables in order to obtain immediate cash payment of the accounts before their actual due date.
PURCHASE ORDER FINANCING
Short-term credit that provides capital to pay vendors upfront for verified purchase order, allows supplier to take on bigger orders.
WAREHOUSE RECEIPT FINANCING
Allows the use of certified goods or commodities as the primary collateral for the loans, and offers borrowers to obtain financing to build up the stock or to farmers who want to store their produce in the warehouse to avoid a distress sale immediately.