Question 1

What is Supply Chain Financing?

Accepted Answer

It gives suppliers the option to receive early payment upon invoice approval in exchange for a small finance charge. In addition to getting paid early, suppliers can see when their invoices are approved and paid. All of this happens without having a detrimental effect on the balance sheets of the suppliers.

Question 2

How does Supply Chain Finance work?

Accepted Answer

1. Supplier submits invoice to the buyer. 
2. The invoice is approved for payment by the buyer.
3. Supplier chooses invoice(s) for early payment in the portal.
4. The supplier is immediately paid after deducting a nominal fee.
5. On the due date of the invoice, the buyer pays the funder in full.

Having said that, the market currently offers a variety of distinct models.

Question 3

What effects does SCF have on accounting?

Accepted Answer

For the buyer or supplier, supply chain financing does not count as new debt. Suppliers' balance sheets or outstanding debt obligations are unaffected.

Question 4

How frequently do suppliers participate in supply chain finance?

Accepted Answer

Suppliers appreciate how supply chain finance provides visibility and the chance to enhance their own working capital position by leveraging the early payments offered at favorable rates.

Question 5

Is supply chain finance a form of factoring?

Accepted Answer

SCF does not involve factoring. When you factor, you engage directly with a bank or financier that uses your unpaid invoices as collateral for a loan or working capital. They take on responsibility for the payment's collection.

Question 6

Will the SCF program impact the way other lenders see my credit?

Accepted Answer

No. Our supply chain finance can easily coexist with any other credit facilities you may have, such as factoring or invoice discounting, because we don't require any security from you.

Question 7

Supply chain finance vs. factoring: differences

Accepted Answer

Suppliers who use traditional invoice factoring sell their invoices to third parties in order to receive payment more quickly than is permitted by standard payment terms. The interest rates are based on the credit worthiness of a business and its customer. In case of supply chain finance, the lender bases its credit decision on the buyer's financials rather than the suppliers'. Since buyers frequently have more consistent cash flows than suppliers do, which enables them to offer better rates.

Question 8

Am I obligated to use your early pay program?

Accepted Answer

You can use the program as much or as little as you need. Use is at your discretion; you can request early payment if you need the funds.

Question 9

What paperwork am I required to sign?

Accepted Answer

You need to accept the T&C in the portal to gain access to the early pay program. It authorizes us to pay you, and you accept that our payment is complete settlement of your customer's invoice.

Question 10

I'm interested, but how much does it cost?

Accepted Answer

There is no fee to join and no charge for using the portal. A discount is applied to an early payment that consists of financing charge. All charges are displayed, and you can review them before deciding to use the funds.

Question 11

How much does it cost the suppliers to accelerate the payments?

Accepted Answer

The supplier pays a tiny discount fee if Early Pay is requested, but the buyer pays nothing.

Question 12

Are the funds guaranteed in any way?

Accepted Answer

No. Even though we work hard to make sure you always have access to funds, our services are subject to an overall limit per customer, so you will be bound by the restriction we have established with your customer (buyer).

Question 13

How long will it take to get paid?

Accepted Answer

The mode of payment determines how long it will take for your payment to reach you. Usually, it takes up to 1-2 business days.

Question 14

How do I get paid earlier?

Accepted Answer

Accelerate payments by requesting 'Early Pay' for approved invoices/receivables in the portal.

Question 15

How can I ask for an early payment on my invoice?

Accepted Answer

Click 'Get Paid Early' in the portal next to your approved invoice(s).

Question 16

Before I submit my invoice, may I check the early payment rate?

Accepted Answer

Yes. The 'Early Pay Offer' screen contains all information about invoice early payment.

Question 17

How do I stop an early payment request?

Accepted Answer

Approved early payment requests cannot be reversed. In case you have any inquiries, please contact your customer.

Question 18

What advantages can early payments offer?

Accepted Answer

Early payments give your company:
	(a) Additional cash to support business expansion. 
	(b) Quick access to cash for unforeseen costs. 
	(c) Increased speed of collecting receivables. 
	(d) Boost available funds and decrease debt simultaneously.

Question 19

How do I add a bank account or update its information?

Accepted Answer

You can add or update your bank information by going to the "Profile" settings section in the portal.

Question 20

Can I submit invoices for partial payment?

Accepted Answer

You can only ask for an early payment of the entire invoice value at this time.

Question 21

How can I receive the funds?

Accepted Answer

Once every day, we process the payments. All authorized requests that arrive before 12 p.m. will be handled the same day. And those that arrive after 12 pm will be paid the following business day.

Question 22

Are all of my invoices going to be included for early pay?

Accepted Answer

First and foremost, it relies on your customer because early payment cannot be requested until all invoices are approved by your customer.

Question 23

What kind of security is expected of suppliers?

Accepted Answer

If you decide to accept an invoice's early payment, we will collect payment from your customer. This implies that you are not required to give us any security.

Question 24

How can I let you know that I wish to access the funds?

Accepted Answer

You only need to log in to our portal. There is a list of all your invoices that can be paid early, and you can choose the ones you want get paid.

FAQs

FAQs about Skyscend Early Payment and Supply Chain Finance

Frequently asked questions