Supply Chain Financing

Build your inventory and fulfil larger orders by extending payment terms to 90 days and beyond, without outing undue pressure on your supplier base.

With supplier finance, we pay your suppliers upfront so that you can serve more customers in the period between your investment in inventory to actual sales.

case study

client

Diaspora worked with a UK-based manufacturing company which sells machinery to global automotive firms. It imports components from suppliers based in the EU and China, manufactures them in its UK plant, and then ships them to clients around the world.

problem

The company’s supplier payment terms range from 30-45 days. However, its average cash conversion cycle – that is, the number of days it takes the company to convert its investment in inventory to sales – is 90 days. As a result, the company has to maintain sufficient working capital on hand to cover costs for 45-60 days after paying for supplies, before receiving payments from clients.

solution

Using supplier finance, the company was able to delay payment of supplier invoices until it had sufficient cash on hand from payment of its invoices, increasing working capital to keep the business running.