Supply Chain Finance – Case Study – Security Business

With working capital being a key consideration for small, medium and large businesses alike, there are a number of new products that have entered the market in the last 2-3 years.

A client of Flexible Capital was looking for ways to improve working capital after finding it difficult to obtain an extension on an existing tier 1 invoice finance facility, predominantly based upon their sporadic need. With debtors generally paying on 30 EOM terms, the client was experiencing periods whereby the suppliers required payment, however they were still waiting on receiving payment themselves.

Flexible Capital worked with the client to establish a $400,000.00 Supply Chain Finance facility. This facility enables the financier to pay supplier and subcontractor invoices on behalf of the client, and the client in turn may defer payment to the financier if required (in order to manage working capital). The suppliers and subcontractors are also able to opt to take early payment (using funds provided by the financier) – each time this occurs, the client receives a rebate from the financier.

This facility:

  • Involves no set up costs
  • Requires no property security or registrations (therefore has no impact on the existing invoice finance facility)
  • May be used as needed (so there are no costs involved if the client elects not to fund invoices through the platform
  • Improves the strength of the Supply Chain by making funds available early to suppliers

The financier provide direct training and support to the client, who has commenced using the facility.

They were surprised by how user friendly the interface is, and how quickly and easily the suppliers embraced the system, with the uptake of early payments exceeding initial expectations.


If you would like to explore how a Supply Chain Finance facility may benefit your business, contact one of the team at Flexible Capital today.

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