Insight
Paying Suppliers on Time Can Really Pay Off
Visit Barclays in order to understand how paying suppliers on time can really pay off.
Supplier Finance
Buyers and suppliers can enhance their trading relationship and improve cashflow with tailored supplier finance solutions from Barclays – enabling accelerated invoice payment at more competitive cost than other financing solutions.
Solutions to your objectives
- Enables small and medium-sized companies to manage their cashflow more efficiently by using the Barclays platform as a mechanism for payment between buyers and suppliers
- Can be more competitively priced than other financing arrangements
- A dedicated team of professionals starts with a thorough understanding of your objectives and trade cycle
- Available to qualifying corporate clients in the UK and Ireland.
How can supplier finance support your business?
- By uploading approved invoices to the Barclays platform, suppliers have the option to request early payment (subject to a discount on funds)
- Can help suppliers improve cashflow without increasing debt – and enhance cashflow visibility
- At the same time, enables buyers to mitigate the impact of term extension on their suppliers – and reduces their suppliers’ financial risk
- Can enable buyers enhance their relationship with suppliers, take costs out of the supply chain and demonstrate corporate social responsibility.
Benefiting both parties in a commercial transaction
|
Buyer |
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:
- Invoices are submitted to the buyer by the supplier
2. After invoices are approved by the buyer, this data is uploaded to the Barclays platform
3. The supplier is able to view approved invoices, confirmed payment amounts and payment due dates by logging onto the Barclays platform
4. The supplier has the option to submit an early payment request to Barclays via the platform
5. If the supplier requests 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 transfer of the full invoice amount to the supplier on the payment due date.
Contact us
Get in touch
To discuss your business requirements and how Barclays can support you, contact us today.