// SUPPLY CHAIN FINANCING
Often industry majors struggle with multiple vendor specific payment terms and different currencies of their vendor database around the world. The supply chain financing challenges are especially huge in the long tail of overseas MRO-supply. Thankfully, V-LINE offers a state-of-the-art single creditor solution which streamlines terms and conditions for its clients globally.
V-LINE offers a one-stop-shop for managing global MRO complexity, securing individual and flawless order-to-cash procurement processes by handling various payment terms and currencies. The main advantages for the clients are that they have a strategic partner managing thousands of vendors for them.
Optimized cash flow.
Supply chain financing, also known as supplier finance, is a set of solutions that optimizes cash flow by allowing businesses to lengthen their payment terms to their suppliers while providing the option for their large and SME suppliers to get paid early.
V-LINE bridges financial gaps, for example by granting customers longer payment terms and taking over advance payments from (overseas) suppliers. In addition, V-LINE streamlines the requested currency from the client, creating harmonized terms & conditions for the end user and a solid partner for the tier-2 vendor.
Manage your financial risk, manage your core business.
One very popular V-LINE service is one-off-payments. This service is often part of a broader service level when V-LINE is the preferred partner for managing global MRO complexity. One-off-payments includes handling a one-off tier-2 vendor purchase order based upon a specific client request. The actual nature of one-off-payment is often related to challenges in accepting terms & conditions, the applicable global currency exchange risk and pre-financing purchase order of the tier-2 vendor. All of the aforementioned challenges and risks are resolved and managed by V-LINE, enabling you, our client, to focus on actual strategic procurement tasks contributing to the overall strategic vision.
AT A GLANCE
What you get:
- V-LINE bridges financial gaps and streamlines payments, creating harmonized terms & conditions for the end user and a solid partner for the tier-2 vendor
- A one-stop shop based around individual payment terms and currencies
Main benefits for the buyer:
- The result is faster payments for the supplier, facilitated by the buyer, which leads 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.
Main benefits for the supplier:
- Improved efficiency: Fast access to their receivables as soon as goods/services are approved. Once an invoice is raised, suppliers can receive payment within 24 hours and are no longer subjected to lengthy 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 the end-users’ credit rating
- Flexibility: Faster payments need only be drawn down as and when needed to suit individual cash flow requirements
