iPasar in conjunction with Koperasi Selaras, intermediates their distinguished member who requires a fast funding; lower fees; and higher advance rates THE Supply Chain Program by providing solution to optimize working capital and to keep cash-flow up performance on both sides of the supply chain.
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.
Benefit to Buyers
- Buyer-Supplier Relationship: Faster payments for the Supplier facilitated by the Buyer lead to stronger buyer-supplier relationships.
- Stable Supply Chain: Suppliers receiving prompt payment for their goods are able to maintain a healthy financial base and therefore provide a consistent service to the Buyer.
- Finance Costs: The Supplier, not the Buyer is charged for early payment of invoices.
- Increased Liquidity: Buyer has the potential to extend payment terms without adversely affecting the financial stability of the Supplier.
Benefit to Suppliers
- Improved Efficiency: Fast access to their receivables as soon as goods / services are approved. Once an invoice is raised, suppliers can receive payment on a shortly payment terms.
- Cash Flow Control: Suppliers are left in control of their cash flow, providing the platform for subsequent flexible forecasting and growth.
- Credit Rating: Suppliers are no longer hampered by their credit ratings. The finance facility is based on the strength of the buyers business.
- Flexibility: Faster payments need only be drawn down as and when needed to suit individual cash flow requirements.