Supply Chain Finance

In a global market which is evolving rapidly and in a constantly changing business environment, more and more major European companies are thinking about the instruments used to strengthen partnerships with their strategic suppliers.

The service Supply Chain Finance, also called “Reverse Factoring“, fits into this context.

Reverse Factoring” means a reversal of the traditional logic of classical factoring.

Normally, the request for a factoring transaction takes place on the initiative of the Client or the supplier of goods or services; this is called “active cycle” management. Conversely, with the service Reverse Factoring, SG Factoring provides major companies with an effective tool for management of the “passive cycle”, in order to ensure ongoing financial support to suppliers.

This is therefore an ideal product for all major enterprises in goods or services with a high receivable capacity characterised by purchases for significant amounts and with repetitive deliveries.

SG Factoring, in agreement with the client business, makes contact with the main suppliers of the latter and signs a factoring agreement with each of them. Obviously, the services offered to suppliers can be tailored to specific client needs.

Supply Chain Finance offers numerous benefits to all partners of SG Factoring.

For the “major debtors“, the operation has a positive impact on revenues, due to the charging of fees or collection of proceeds from sales discounts.

This solution also reduces operating costs, through a centralised and outsourced payment service.

Finally, Supply Chain Finance improves relations with suppliers through an increase in productivity in the administrative management of the business relationship.

This solution also helps to retain the network of suppliers.

The benefits for suppliers are significant: through the option of payment in advance, they can optimise the management of cash-flow forecasts.

Our solution offers rapid access to sources of funding, without any competitive impact on bank financing.

Suppliers can also deconsolidated receivables, according to their specific needs, benefiting from our strong experience in the field.

We remain at your disposal to adapt Supply Chain Finance to all your special needs.