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Supplier Finance

Supplier Finance is a core product within Barclays Trade & Working Capital – Supporting our clients to achieve their working capital and corporate social responsibility objectives.  

Supplier Finance Solutions

We are committed to continue developing our capabilities in Supplier Finance and fulfilling your evolving requirements.

In order to provide the optimal solution, Barclays Supplier Finance is delivered through two channels:

Partnership - with a leading fin-tech company. The partnership delivers a global solution designed to meet your objectives and requirements.

Participations - becoming a funder on an existing programme with another FI.. Our joining as a participant is often used to support growth of the programme.

Why do clients implement Supplier Finance?

Our clients implement Supplier Finance for a number of reasons. The most frequent reason is to support their working capital objective. More recently, they are increasingly focused on corporate social responsibility and sustainability.

A thorough understanding of these as well as your requirements, KPIs and targets is critical to delivering a successful programme. This will ensure programme design and structure is aligned with your objectives and reflects your values.

Working capital

Supplier Finance is implemented to support your working capital objectives through mitigating the impact of payment term extension on your suppliers.

Corporate social responsibility

Supplier Finance is a means of tangibly demonstrating corporate social responsibility, including supporting a green agenda.

Sustainability

Supplier Finance is a tool to provide financial support to your suppliers by offering them access to low cost, non-recourse funding.

The key to delivering a successful program is understanding your objectives and desired outcome.

Client testimonials: Co-op

Delivering value through a successful partnership programme with Co-op

A partnership programme that exceeded client expectations.  We extended the scope, increased funding and delivered more value to key stakeholders

Benefits of Supplier Finance

Supplier Finance contains a number of features that offer a win-win solution to you and your suppliers.

The fundamental feature of Supplier Finance is to provide your suppliers with the option to accelerate the collection of their receivables i.e. they trade their account receivable to Barclays in exchange for an early discounted cash payment. 

Supplier Finance also offers increased visibility. Your suppliers can see data on an online platform, including approved invoices, confirmed amounts and payment due dates. All of which reduces the need for them to contact you in order to check if an invoice is approved or when payments will be made. This also improves their cash forecasting.

The cost is incurred by your supplier. The early payment discount charge is deducted from the funds received by them and is based on your cost of funds rather than your supplier’s.

Your suppliers will benefit from accessing cash by simply selecting a receivable for early payment on the online platform and submitting the request electronically. When they take an early payment, the cash replaces the account receivable on their balance sheet and they are free to use the cash in a manner that suits their business requirements.

Our clients increasingly see Supplier Finance offering tangible financial support to their suppliers and often develop a stronger relationship with those suppliers who elect to on-board.

Buyer

Supplier

Mitigates the impact of term extension on suppliers

Provides the option to accelerate the collection of their trade receivable

Reduces suppliers’ financial risk

Improves cash flow and cash conversion cycle

Enhances relationships with suppliers

Enhances cash flow visibility and cash forecasting

Reduces costs in the supply chain

No need to change banking relationships or open a new bank account

Tangibly demonstrates Corporate Social Responsibility

Ability to take an early payment request when it suits their business requirements

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