What is Supply Chain Finance (SCF)
TIM offers Supply Chain Finance to Australian businesses with proven track records. With our strong financial position and expertise in trade transactions, it allow us to quickly structure the best funding solution for your business. Simple and straightforward!
It will only take a few seconds & will not affect your credit rating.
The key concept behind supply chain finance is to pay your suppliers as quickly as possible in order to take advantage of early settlement discounts. In simple terms, it allows the buyer (you or your business) to pay later and the supplier to secure payments earlier, allowing both parties to improve their working capital position.
How it works?
- You receive invoices from your suppliers for goods received.
- You send us the invoices confirming its good to pay.
- Early payment is offered to your suppliers for a small discount.
- The supplier elects to be paid early.
- TIM pays the supplier immediately.
- You pay TIM the invoice (less the discount received from your supplier) 30-90 days later.
- All we charge you is a small fee which is completely offset against the early payment discount that you receive from your suppliers resulting in “zero” cost of funding and pure profit for your business.
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Benefits of Supply Chain Finance
Buy now, pay over time, mitigate risks and most importantly, free up working capital.
How TIM supply chain finance helps buyers:
- Secure early settlement discounts from suppliers whilst still paying TIM 30-90 days later.
- Easy credit approval and set-up process.
- Immediate increase in your gross profit margins and working capital position.
- Improved supplier relations and financial strength of your supply chain.
- Greater Purchasing Power – the extended trading terms enable you to increase your purchase orders in line with market opportunities.
- Unsecured, off-balance sheet facility.
- No Property Security required.
How TIM supply chain finance helps suppliers:
- Suppliers get access to cash immediately – no longer need to wait 30 to 60+ days to receive your payment.
- Reduction of trade receivables and an immediate increase in their cash position.
- Generally cheaper than invoice finance or invoice discounting.
- Strong co-operation between your company and the supplier creates a competitive advantage.
- Only elect to take the early payment, when needed.
- Higher likelihood of suppliers getting more business as suppliers have upfront cash flow to fund their purchases.
- Eliminates any potential payment disputes 30-60+ days later from the buyer.
Are you facing working capital issues? Fill out our quick application form to get in touch with one of our friendly advisers and find out how trade finance can help your business.