What is Distributor Financing?

Supply chain finance provides credit to distributors buying goods from manufacturers, helping them manage cash flow and increase product sales to end customers.

HOW DOES IT WORK

Suppliers, Distributors and Banks

All will enter into a distribution finance program on the SCF platform.

Credit Assessment

The banks assesses the creditworthiness of the distributors.

Purchase Order

The distributor places an order with the supplier for goods.

Invoice Generation

The supplier generates an invoice and uploads it to the SCF platform.

Credit Approval

Based on pre-approved credit limits or after a quick assessment, the bank approves the financing for the distributor.

Payment to Supplier

The banks or financial institution pays the supplier immediately or within a short period, ensuring the supplier has the necessary working capital.

Shipment

The supplier ships the goods to the distributor.

Confirmation

The distributor confirms receipt of the goods on the platform.

Flexible Terms

The distributor repays the financed amount to the banks according to the agreed-upon terms.

Interest and Fees

The distributor may pay interest or fees for the financing service.

Benefits of Fauree’s distributor financING

For a Buyer

Improved Cash Flow: Allows distributors to manage their cash flow better by delaying payments while still acquiring necessary inventory.

Increased Purchasing Power: Enables distributors to buy more goods than they could with their available cash, potentially leading to higher sales.

Flexible Repayment: Offers flexible repayment terms that align with the distributor’s cash flow cycles.

For a Supplier

Guaranteed Payments: Suppliers receive payments promptly, reducing the risk of bad debt.

Increased Sales: By facilitating financing for distributors, suppliers can increase their sales volume.

Strengthened Relationships: Strengthens the relationship between suppliers and distributors by supporting their business growth.

Ready to Optimize Your Cash Flow?

Introducing Fauree, the cutting-edge supply chain platform that revolutionizes your operations. By optimizing processes, enhancing cash flow, and fostering transparency, Fauree empowers small and medium enterprises (SMEs) to compete on a global scale.

Locations

United Arab Emirates

Office C 201, Burj Daman DIFC, Dubai Phone: +971 4 7700341

Oman

Fauree Tech LLC (CR No. 1519211) Sultanate of Oman

Canada

King Street West, Suite 4800-367, Toronto, ON M5H 1A1 +1 (416) 970-7213

KSA

Al Nada District, Othman Bin Affan Road opp. Mohd. Bin Saud Islamic University +966 11 2881111

Pakistan

1st Floor Kickstart Block 5, Clifton, Karachi +92 335 7402649
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