Supplier Finance

Corporates can now empower their suppliers. On-boarded suppliers can convert account receivables into immediate cash with Africa Trade Credit’s Supplier Finance. Optimize business growth with seamless cash flow cycles.

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Supplier Finance

Our supplier financing solution helps suppliers improve their cash flow by enabling them to quickly convert unpaid or due invoices into cash through our digital marketplace. Our financial product is particularly beneficial for suppliers who encounter challenges with traditional trade finance processes. By leveraging confirmed customer invoices, we assist suppliers in unlocking their receivables early and enhancing their cash cycle.

Instant or early cash on invoices

This feature provides immediate access to funds by enabling suppliers to convert unpaid or due invoices into cash through our digital invoice marketplace.

Discount Confirmed Invoices

Eligible vendors can sell their confirmed invoices to interested buyers at a discounted rate through our platform, providing quick access to cash flow.

No Collateral

Even in the absence of collateral, vendors with a good track record with one of our well-performing  partner corporates can obtain an unsecured line of credit facility.

Technology ERP Integration

Our platform supports technical integration to enable seamless flow of invoice from vendor to corporate for approval and lender for financing.

Digital Agreement

A digital agreement is signed among the supplier, financier, and our platform; with approved limits and repayment terms

Digital KYC Onboarding

Our one-time vendor KYC process allows automatic reapplication for all future invoice, enabling transactions to be completed within 24 hours.

Understanding our Vendor Finance

Our platform provides a transparent digital marketplace for suppliers to sell their receivables to investors and financial institutions through a system workflow. The immediate payment received for the invoices allows for improved cash flow and efficient planning, without any hidden fees or collateral requirements.

Benefits of Vendor Finance

Africa Trade Credit’s vendor financing platform creates a synergistic environment where vendors, lenders, and anchors collaborate to drive business growth and maximize their collective potential.

INVESTORS

  • Low customer acquisition cost
  • Attractive Returns than traditional fixed-income investments.
  • Investment diversification through investment across sectors and industries.
  • Full supply chain transparency & personalised dashboards.
  • Automated flow for KYC, lending approval, disbursement  & repayment.
  • High frequency capital rotation through scale and automation of processes.

SUPPLIERS

  • Collateral Free & Guarantee Free
  • Corporate led value chain financing
  • Accelerate business growth through enhanced cash flow injection
  • One time digital KYC onboarding
  • One click digital funding application for all future invoice payments
  • Fully transparent with NO hidden fees

ANCHOR CORPORATES

  • Accelerate cashflow in your supply chain
  • Suppliers can get financing based on anchor creditworthiness
  • One-time digital KYC onboarding
  • Corporate integration based payable validation and confirmation
  • FIFO based auto debit repayment using virtual account
  • Personalised dashboard
  • Corporate has flexibility in factoring and reverse factoring

How It Works

01

Suppliers Upload Invoices

Upload your unpaid invoices on our financing platform through our seamless digital portal integrated with your ERP system.  The partner corporate responsible for payment validates the invoice and approves it on the system or via ERP integration

02

Early Payment Offer

Once your invoices are approved by the corporate, our platform offers you the opportunity to receive early payment from available investors after an agreement between investor, corporate and the supplier , giving you the funds you need without waiting for customer invoice payments.

03

Payment Collection

We take responsibility for collecting payment from the customer when the invoice is due. The collected amount is then transferred to the investor with whom you have an agreement. We deduct the amount owed to you, along with any associated fees or charges for the financing as per our agreement

FAQs 

What is Invoice Discounting?

Invoice discounting is the practice of using company’s unpaid invoices to raise working capital & fulfil its financial needs. Financial institutions including Banks and NBFCs provide discounting services for businesses.

What are the different types of businesses that are eligible for loans?

We offer Vendor Finance to all Vendors having a proven track with a well performing Anchor corporate and registered as Proprietorship, Partnership, Private Limited, Limited Liability Partnership and Public Limited Companies.

When is the financing disbursement done and to whom?

The financing disbursement is done by the Lender to the designated Bank account of the Vendor within 24 hours, as per the process agreed.

What are the terms of repayment?

Repayment is made by the Anchor Corporate to the respective Lender anytime before the end of the credit period. The credit period for each invoice ranges between 30 to 120 days, as per terms agreed with the Anchor corporate. The interest is charged only for the actual period for which credit was used.

What is the mode of repayment?

Using auto debit facility via NACH.

Do I need any collateral to avail a Vendor finance facility?

There is usually no additional collateral required, as our Lending Partners fund a business on the basis of their relationship with the Anchor corporate and the cash flows due within that cycle. However, in some case lenders may request for collateral based on their assessment of the risks involved