Don’t lose that dream order

  • Anil Kanda
  • 20 Aug, 2013

The economy is picking up again; businesses are now filling their order books and making up for lost time. However, for the smaller businesses it isn’t that straight forward…

The problem:

Due to the recent economic climate many suppliers are now, understandably asking for full or partial payments upfront as a security; and this is currently leaving SMEs in a difficult situation. If a business receives a purchase order from a customer and does not have sufficient capital to pay the supplier, the business is at risk of losing that order, and potential future orders.

Solution:

Some finance companies can step in and pay the supplier on the most favourable terms.

At Ashley Commercial Finance Limited, we can now quickly fund a supplier and recoup the money when our client has delivered and raised the invoice with their customer. This innovative funding model is helping SME’s nationwide to rebuild their business as the recession fades.

How it works

  1. Client receives purchase order from end customer.
  2. Client requests materials from supplier in order to start work
  3. Supplier then issues invoice to the client
  4. Ashley issue payment to supplier directly, on behalf of client
  5. Client completes work and raises the invoice with their customer
  6. Customer then pays the assigned invoice directly to Ashley, where Ashley will recoup the money that was paid to the supplier and release the rest to the client.

The benefits of Supplier Finance:

Supplier finance encourages business growth and flexibility. It allows businesses to say ‘yes’ to orders even if they do not have the existing capital to pay their supplier straight away.

  • Accept larger orders and build a larger customer base.
  • Paying a Supplier promptly may entail future discounts/benefits
  • Meet customer’s expectations & deadlines.
  • A quick flexible funding solution.
  • Funding on tap- Supplier Finance can be used as and when needed with no long term contractual obligations.
  • Supplier finance can be stand alone funding service or can be a supplement to a longer term Ashley Invoice Finance facility.

What type of businesses benefit?

  • Start ups and growing businesses who need to boost their cash flow
  • Works well for Wholesalers, Producers, Distributors
  • Businesses with seasonality