The supply chain is often described as a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. In case of a product, there is the physical transportation of the product, the financing and payment of the product, and all the communication necessary to organize that trade. SLI not only takes care of physical transportation, but can also give you access to factoring facilities so as to increase your cash flow reserves, especially in case of clients that require long payment terms.
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs. Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. The sale of the receivable transfers ownership of the receivable to the factor, indicating the factor obtains all of the rights associated with the receivables.
The arrangement is usually confidential in that the debtor (customer) is not notified of the assignment of the receivable and the seller of the receivable collects the debt on behalf of the factor. In some cases, the debtor (customer) may be made aware of the factoring arrangement, with your prior approval. Moreover, we can factor only the invoices that you are interested to sell due to their long payment terms. We do not require to factor all your invoices.
Without being a financial institutions itself, SLI has partnered with financial institutions (factors), which can offer you all or part of:
Buy from you your invoices to your customers
Do the administration work
Pay you now of your invoice value, at a discount
Collect payment from your customer, when payment term is due
Our factoring services are also offered to companies that sell B2B and B2C via E-commerce platforms such as Shopify, Magento, Amazon, Alibaba (阿里巴巴集团), Taobao (淘宝网), Big Commerce, Lazada, Timo International, Kaola (网易考拉), JD.com (京东), VIP.com (唯品会), Xiaohongshu.com (小红书), Pinduoduo.com (拼多多), eBay, and many more. We simply collect payment from your customers after the minimum delay of the online payment company has expired, while we pay you those invoices immediately, at a discount.
Whether you are a SME or a large organization, these factoring services are offered to you. Our partner's job is based on the purchase of your invoices. On-boarding takes 2 weeks, which is basically the time necessary to make a due diligence on new clients. This allows you to accept projects and trades, with longer payment terms, which would otherwise stretch your cash flow and that you might otherwise have to decline. It therefore allows you to grow further and faster.
For more information on how we can support your trade finance needs, please contact your local SLI representative.