Create competitive advantages through Alternative Finance

Alternative Finance solutions can be used to gain competitive advantages for your business. These advantages are both financial and non-financial, and you can use your facility in a way that suits you, dependent on your goals.

So, in an increasingly competitive environment, I share some of the ways Supply Chain Finance (SCF) can be used to give your business the edge over the competition.

Financial Advantages:

  • You can use SCF to pay suppliers more quickly;

You can use this to gain early payment discounts and therefore procure goods more cheaply than your competitors.

  • SCF can be used to give your customers more time to pay you;

Whilst this may seem counter-productive, you can use this to your advantage when winning new business and contracts as you may be able to offer more flexible payment terms than your competitors. You may also find your customers are willing to pay a little more for the goods if they are able to access longer payment terms.

  • SCF can give you a cashflow boost;

Are you funding growth through cash reserves? If so, you can use SCF to boost cashflow, fund extra growth confidently.

  • SCF essentially allows you to buy now, pay later.

This can allow better planning and management of cashflow and the cash you have in the bank. It can also smooth over lumpy cashflow cycles, and ensure you have enough cash at hand to meet obligations as they fall due.

Non-financial Advantages:

  • Supplier goodwill;

If you can pay suppliers more quickly you may find that lead times decrease, and your supplier is more responsive to short notice changes to orders.

  • SCF can essentially turn you into a cash buyer;

This can mean you can procure the best stock, at the best price and in the quickest time, giving you the edge over your competition. More flexibility also allows you better negotiating terms.

  • You can use SCF to assist when breaking into new markets;

Being able to pay new UK or even Foreign suppliers upfront can help with initial trust issues, and ensure they recognise you as a serious and long-term customer.

  • Lastly, become a good corporate citizen.

With recent high-profile events including the collapse and administration of a number of well known firms, there is more pressure than ever on supply chains to ensure cash flows through them efficiently and people are paid promptly. Many businesses are turning to alternative finance to ensure their supply chains and procurement channels are well financed at all times.

Sancus provide Supply Chain Finance to businesses across the UK. All our solutions are unsecured and designed to complement existing bank facilities to ensure cashflow can be optimised at all times.

If you would like a wider discussion around your funding needs, please contact Andrew Oppe on:

T: 07432 076091

E: Andrew.oppe@sancus.com