Supply Chain Finance Facility Setup

Working Capital & Supplier Finance

Build the financing programme behind your supplier payments

Financely works with established companies that want suppliers paid earlier while retaining or extending their own contractual payment terms.

We analyse procurement volumes, supplier concentration, accounts payable, currencies, jurisdictions and current payment terms to determine how the programme should be structured and presented to financing providers.

The mandate can then move from facility design and financing materials into lender mapping, market distribution, negotiations, due diligence and implementation.

When This Is Relevant

You have material recurring supplier spend and want to improve working capital, extend payment terms, support supplier liquidity or establish additional financing capacity around approved payables.

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Facility Mechanics

How an approved-payables programme works

The exact structure depends on the buyer, financing provider and applicable legal framework, but a typical facility follows four commercial steps.

1

Deliver

The supplier delivers eligible goods or services and invoices the buyer under the ordinary commercial contract.

2

Approve

The buyer validates the invoice and confirms the payment obligation through its normal accounts-payable process.

3

Finance

An eligible supplier can receive early payment from the financing provider against the approved obligation.

4

Settle

The buyer pays the financing provider at the agreed contractual maturity under the programme.

Facility Capabilities

Supply chain finance from programme design to lender execution

We group the work around the actual requirements of establishing and placing the facility rather than treating structuring, documentation and lender outreach as disconnected services.

Facility Structuring

Design the commercial structure around the buyer and supplier base.

Target facility sizing
Approved-payables structure
Supplier eligibility analysis
Invoice eligibility criteria
Payment-term analysis
Programme tenor
Currency requirements
Jurisdiction analysis

Working Capital Analysis

Assess the operating requirement and economics behind the programme.

Accounts-payable analysis
Supplier spend analysis
Supplier concentration
Payment-term benchmarking
Cash conversion analysis
DPO impact analysis
Liquidity requirements
Programme utilisation assumptions

Supplier Finance

Structures designed around recurring supplier obligations.

Supplier early-payment programmes
Reverse factoring
Approved receivables purchase
Cross-border supplier finance
Multi-supplier programmes
Strategic supplier support
Multi-currency structures
Supplier onboarding strategy

Financing Materials

Prepare the credit case required for financing-provider review.

Financing memorandum
Buyer credit presentation
Financial analysis
Accounts-payable data presentation
Supplier concentration schedules
Programme assumptions
Data-room preparation
Underwriting information coordination

Lender Distribution

Position the facility with financing sources suited to the mandate.

Commercial bank mapping
Transaction bank outreach
Trade finance fund outreach
Private credit distribution
Receivables fund placement
Alternative working-capital lenders
Multi-funder programme analysis
Financing-provider coordination

Execution & Launch

Manage the financing process through the agreed implementation scope.

Financing-provider questions
Term sheet comparison
Commercial negotiations
Due-diligence coordination
Documentation support
Operational workflow review
Supplier onboarding coordination
Facility launch support

Working Capital Objectives

When companies use supply chain finance

The strongest mandates normally begin with a defined working-capital or procurement problem rather than a generic request for additional financing.

Extend Payment Terms

Support longer contractual payment cycles while giving eligible suppliers access to earlier payment.

Protect Supplier Liquidity

Give important suppliers access to liquidity without requiring the buyer to accelerate every payment.

Increase Purchasing Capacity

Support higher procurement volumes where supplier payments are consuming available operating liquidity.

Improve Working Capital

Retain cash within the operating cycle for longer while maintaining commercially workable supplier relationships.

Add Facility Capacity

Bring additional financing providers into an existing programme where available capacity is insufficient.

Standardise Supplier Finance

Replace fragmented bilateral arrangements with a more structured financing programme across eligible suppliers.

Typical Mandates

Designed for companies with recurring supplier spend

Supply chain finance is generally most relevant where there is sufficient procurement volume, a recurring supplier base and verifiable trade activity.

Initial Information

What we need to evaluate the programme

A complete initial file allows us to assess the financing requirement, determine likely lender appetite and identify the appropriate structure.

Financial Information

Recent financial statements
Current management accounts
Existing debt facilities
Working-capital profile

Payables Data

Accounts-payable ageing
Annual supplier spend
Current payment terms
Historic payment behaviour

Supplier Information

Supplier list
Supplier jurisdictions
Spend concentration
Relevant currencies

Programme Requirement

Target facility size
Target payment terms
Expected utilisation
Required jurisdictions

Trade Documentation

Sample supplier invoices
Purchase orders
Supply agreements where relevant
Evidence of historic trade flows

Operational Information

Invoice approval workflow
ERP or AP system information
Payment process
Supplier onboarding requirements

Related Structures

When the financing requirement extends beyond approved payables

Some working-capital mandates require a broader financing structure around inventory, receivables, purchase orders, commodities or the complete trade cycle.

Procedure

How the supply chain finance mandate works

A clear four-stage process from programme review to financing-provider execution and implementation.

1

Assess

We review the buyer, supplier base, procurement volumes, accounts payable, financial profile, jurisdictions, currencies and intended working-capital outcome.

2

Structure

We determine the proposed facility mechanics, eligible obligations, supplier population, programme size and financing-provider profile.

3

Distribute

Financely prepares the financing materials, maps appropriate banks, funds and working-capital providers, and distributes the mandate.

4

Execute

We manage financing-provider questions, compare proposals, support negotiations and coordinate due diligence and implementation through the agreed mandate scope.

Frequently Asked Questions

Supply chain finance facility setup

What is a supply chain finance facility?

Supply chain finance covers financing structures built around trade obligations between buyers and suppliers. In an approved-payables programme, an eligible supplier may obtain early payment from a financing provider after the buyer has approved the underlying invoice.

Is supply chain finance the same as factoring?

Not necessarily. Traditional factoring is commonly initiated by the supplier against its receivables. Approved-payables finance is typically buyer-led and built around obligations that have already been validated by the buyer.

What is reverse factoring?

Reverse factoring is commonly used to describe a buyer-led supplier finance programme where financing is made available against approved supplier invoices.

Can supply chain finance help extend payment terms?

It can support a working-capital strategy in which a buyer maintains or negotiates longer payment terms while eligible suppliers retain the ability to receive payment earlier from a financing provider.

Who funds supply chain finance facilities?

Depending on the programme, financing can come from commercial banks, transaction banks, specialist trade finance institutions, receivables funds, private credit funds and other working-capital providers.

Can suppliers be located in different countries?

Yes, subject to the structure and financing-provider appetite. Cross-border programmes must also account for currencies, legal requirements, KYC, sanctions screening and operational capability.

Can several financing providers participate?

Larger programmes can potentially involve more than one financing source. The appropriate structure depends on programme scale, allocation mechanics, eligible jurisdictions, concentration and operational requirements.

Does a supply chain finance facility require ERP integration?

Not always. Some programmes can operate through structured data files and controlled approval processes, while higher-volume programmes may require deeper integration with the buyer's ERP, treasury or accounts-payable systems.

Does supply chain finance count as debt?

Accounting treatment depends on the specific contractual structure and applicable accounting standards. Companies should obtain advice from their accounting and audit advisers regarding the treatment of any proposed programme.

What documents are required to start?

Initial information normally includes company financials, accounts-payable ageing, supplier data, annual procurement volumes, current payment terms, currencies, jurisdictions and the proposed facility requirement.

Is Financely the financing provider?

No. Financely acts as an advisor and arranger. Any financing is provided by third-party financing institutions and remains subject to their underwriting, compliance, documentation and final approval.

Need to establish a supplier finance programme?

Submit your company profile, supplier spend, current payment terms, target facility requirement and available financial information to receive a commercial quote for the mandate.