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Supplier Finance

Barclays Supplier Finance is a buyer-led proposition that operates on the basic principle of a supplier discounting its receivables in exchange for an early cash payment from Barclays. At maturity, the buyer will settle this advance with Barclays. A technology platform facilitates the information flow between all parties involved.

  • Barclays’ approach starts with a thorough understanding of your objectives; this is followed by a comprehensive trade cycle analysis
  • Supplier Finance is currently available to qualifying corporate clients based in the UK and Ireland

How it supports your business

  • In the wake of the economic crisis, lack of liquidity and widening spread between investment-grade and non-investment grade rates have created an incentive to explore alternative finance structures to support small and medium sized enterprises. One of these alternative financing structures is called supplier finance, built on the underlying bona fide trade relationship between a buyer and their suppliers.
  • A dedicated team of professionals will seek to deliver the optimal solution tailored around your requirements
  • The solution creates an alternative source of financing that is often more competitively priced than existing financing arrangements 

Supplier finance is subject to terms, conditions and credit approval.

Benefiting both parties in a commercial transaction

Buyers Supplier
Mitigates the impact of term extension on their suppliers
Provides the option to accelerate the collection of their trade receivable
Reduces their suppliers’ financial risk Improves cash flow without increasing debt
Enhances their relationships with suppliers Enhances cash flow visibility
Takes costs out of supply chain Pays to their existing collection bank account
Demonstrates Corporate Social Responsibility Applies costs only when an early payment request is made on the trade receivable.

How supplier finance works

Barclays Supplier Finance offers a seamless 7-step payment process:

Supplier chain finance diagram
  1. Invoice submitted to the Buyer by the Supplier.
  2. After invoices are approved by the Buyer, this data are uploaded onto the platform.
  3. The Supplier is able to view approved invoices, confirmed payment amounts and payment due dates by logging onto the platform.
  4. The Supplier has the option to submit an early payment request to Barclays via the platform.
  5. If the Supplier request an early payment and Barclays accepts this request, Barclays then pays discounted funds based on the receivable.
  6. On the payment due date, the Buyer’s bank account is debited for the full invoice value.
  7. If the Supplier have not requested an early payment, Barclays facilitates the transfer of the full invoice amount to the Supplier on the payment due date.

Important information

The products referred to in this webpage are subject to separate terms and conditions.

Talk to us

Find out more about our Supplier Finance service by talking to your Relationship Director.

New to Barclays? Our experienced UK-based team can listen to your business need, offer assistance on-the-spot or put you in touch with the right specialist at Barclays. Call us on:

0800 015 4242*

Alternatively we can call you back or you can email us with your query.

Related products

Trade Solutions

Enhance your trading potential and increase security of payment with our range of products and services.

Working Capital

Ease cashflow fluctuations with a range of products that can support you in covering everyday expenses or planning for growth.

How can we help?

To discuss switching to Corporate Banking at Barclays, call us on: 0800 015 4242*