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Open Account Financing
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Our @GlobalTrade Open Account Financing system enables a bank to offer buyers the capability to upload approved payables information to the bank while sellers can use the Internet to access the same system and request early payment from the buyer’s bank of this approved payable. Once the buyer approves the transaction, the seller can view the amount and the exact payment date. This helps buyers negotiate better prices and improve their relationship with the suppliers.
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Suppliers in turn enjoy a cheaper rate of financing based on the buyer’s credit rating with its bank and accurate cash flow projections. The bank can use the same system with its clients on the receivable side by discounting invoices presented electronically through the system.
Benefits for Buyers
- Ability to negotiate better prices with its suppliers
- Improves the relationship with suppliers
- Enables buyer to extend payables and improve working capital
Benefits for Suppliers
- Ability to turn receivables into cash more quickly
- Ability to use buyer’s investment-grade credit to finance receivables
- Ability to alleviate working capital and cash flow constraints
Benefits for banks offering @GlobalTrade Open Account Financing system
- Ability to create long term growth opportunity with large corporate clients by becoming an integral part of clients’ supply chains
- Additional transactional or license revenue as system provider and facilitator
- Visibility into the client’s financial and logistics supply chains
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