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Introduction to Accounts Receivables Financing: Innovative Financing Solution for Your Business 

Receivables finance is an innovative financing solution that enables businesses to unlock the value of their unpaid invoices. Also known as invoice finance or accounts receivable financing, it provides businesses with immediate access to cash by converting their outstanding invoices into cash.


These days, innovative technology has transformed receivables financing into one of the most commonly used forms of financing. The surge in popularity has been led by the increase in fintech companies (particularly tech start-ups) entering the receivables financing sector.


Here's how receivables finance works:

Submitting invoices:

The business submits its invoices to a receivables finance provider.


Approval and funding:

The receivables finance provider evaluates the creditworthiness of the business's customers and approves a certain percentage of the invoice value for funding. The provider then pays the business a percentage of the invoice value upfront, typically ranging from 70% to 90%, with the remaining amount being held in reserve.


Collection and settlement:

The receivables finance provider collects the full amount from the business's customers when the invoice is due. Once the full amount has been collected, the provider releases the reserve amount to the business, less a fee for the financing.


Repeat process:

The business can then repeat the process by submitting new invoices for financing, providing a steady source of working capital.



Receivables finance offers several benefits for businesses, including:

Improved cash flow:

Receivables finance provides businesses with immediate access to cash, which can help improve their cash flow and support growth.


Reduced risk:

By converting unpaid invoices into cash, receivables finance reduces the risk of non-payment or late payment by customers, providing businesses with greater financial stability.


Flexible financing:

Receivables finance provides businesses with flexible financing that can be tailored to their specific needs. The amount of funding available is tied to the value of their outstanding invoices, so businesses can access more or less financing as needed.


Improved creditworthiness:

Receivables finance can improve a business's creditworthiness by reducing the amount of outstanding debt on its balance sheet.


In summary, receivables finance is an innovative solution enabling businesses to unlock the value of their unpaid invoices and improve their cash flow. It provides flexible financing, reduces risk, and improves creditworthiness, making it an attractive option for businesses of all sizes.


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Financing

Empowering Business Growth

Access to working capital in an affordable and efficient manner is essential for business.

We recognize the need for customized solutions as each business has differing requirements.

SupplySci provides accounts payable and accounts receivable funding programs to meet your evolving liquidity requirements combined with our product procurement program.

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