What is supply chain finance?

Supply chain finance is the collective term for a group of financial solutions aimed at optimizing cash flow and working capital for all parties involved in a supply chain. Its various products and techniques are designed to enhance the efficiency and effectiveness of financial transactions between buyers, suppliers, and financial institutions.

What is payables finance?

Payables finance is where a corporate (buyer) commits to paying their invoices (or approved invoices) at maturity, allowing a funder to offer the supplier an early payment in exchange for a discount based on the buyer’s credit risk.

What is trade finance?

Trade finance involves providing finance, risk mitigation, and payment solutions to buyers, sellers, and other participants in global trade. The objective is to minimize the risks associated with cross-border transactions and ensure the smooth flow of goods and services between buyers and sellers.

What is trade receivables finance?

Trade receivables finance is a type of supply chain finance where businesses can obtain funding for invoices owed to them before the payment date. A receivable purchase agreement is signed between a company and either a bank or finance provider, enabling financing based on account receivables.

What is trade receivables securitization?

Trade receivables securitization allows large corporates to sell pools of their outstanding invoices on capital markets, creating a new funding source. A special purpose vehicle (SPV) pools the invoices and issues securities to investors, generating funds for receivables purchases.

What is the difference between factoring and securitization?

Factoring allows companies to sell their receivables directly to a funder in exchange for finance, whereas securitization involves selling a pool of receivables through an SPV, which issues securities to investors. Factoring is a direct transaction, while securitization requires a large receivables portfolio and transfers risk to the SPV.

What is distributor finance?

Distributor finance provides funding to distributors to help finance their inventory and receivables, improving cash flow and working capital. Manufacturers can also request early payment from funders for invoices, receiving the full invoice amount upfront.

What is dynamic discounting?

Dynamic discounting allows buyers to use excess cash to pay invoices early. Buyers and suppliers negotiate payment terms that accelerate payments in return for a discount, benefiting both parties by optimizing cash flow and providing suppliers with an alternative funding source.

What is working capital management?

Working capital management is the process of managing a company’s short-term assets and liabilities to ensure financial stability and operational efficiency. It involves overseeing cash, inventory, accounts receivable, and accounts payable to balance liquidity and profitability.

Supply Chain Finance Suite

Overview

Specs

Supply Chain Finance Suite

Access working capital by unlocking the value of receivables before maturity

Flexible | Scalable | Automated

Empowering corporates with flexible liquidity for growth

Whether easing liquidity pressure or enabling growth, FIS® Supply Chain Finance Suite (formerly Demica) connects CFOs and corporate treasurers to a network of global funders through secure, cloud-native technology. Flexible deal structures, transparent reporting and expert support also help keep your program aligned with treasury goals.

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CFOs

Secure funding to grow and enhance financial clarity

Despite efforts to improve cash flow, many organizations still rely on inflexible financing and inefficient manual processes to manage financial data. The Supply Chain Finance Suite delivers bespoke financing at competitive costs, connecting you with our diverse funding network and expert support to help you unlock and optimize liquidity.

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Corporate treasurers

Free cash tied up in your trade receivables

Rising funding costs make it hard to access cost-effective financing, and with high days sales outstanding, liquidity remains trapped in your trade receivables. Our technology and expert team help unlock that liquidity and optimize funds in motion by freeing up your working capital and accelerating the cash conversion cycle.

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Supply Chain Finance Suite

Flexible working capital solutions

Access the expert support you need to unlock liquidity and improve your working capital metrics with the Supply Chain Finance Suite. Our team works with you to deliver a working capital solution to meet your specific needs, from initial receivables analysis and data structuring through solution design, funder selection, funding delivery and ongoing reporting.

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Meet the businesses we serve

Insights

Transform data into strategic value

By consolidating data from various systems, it’s possible to gain reliable, real-time insights that help corporates and funders optimize their funds effectively.

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Bridging risk and financial management

Meeting funder expectations for risk management requires detailed reporting, transparency and integration, making them crucial for banks offering structured solutions. Read article

Leverage expertise, ensure compliance

Partnering with third-party technology providers, banks can use their expertise to offer superior products while maintaining security and compliance standards. Read article

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The Supply Chain Finance Platform enables banks and financial institutions to act as a single source for comprehensive supply chain finance solutions by streamlining operations and improving processes.

Supply Chain Finance Platform (formerly Demica)

Deliver the full range of supply chain finance solutions to your corporate customers

Streamline your operations.

Optimize transactions.

Serve as a single provider.

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Enabling smarter liquidity and cash flow strategies

Browse our resources to learn more about how our trade receivables finance and working capital optimization solutions help businesses access liquidity and maintain more control over cash flow.

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Specs

Supply Chain Finance Suite

Smooth integration with existing treasury and ERP systems for improved operations

Structured programs tailored to your business cycle and customer base

Flexible financing options available through a global network of over 250 funders

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Enhance capital

Increase liquidity to support daily operations and fuel future investment plans.

Limit debt

Reduce reliance on short-term borrowing and costly credit lines to strengthen cash flow stability.

Strengthen oversight

Maintain visibility and control through centralized reporting and performance dashboards.

Supply Chain Finance Suite

Optimize working capital management across your organization with the FIS® Supply Chain Finance Suite. Sell trade receivables for early liquidity, extend supplier terms and fund distributors from one centralized platform with automation, scalability and expert-led support.

Resources

Receivables Finance product sheet

A cloud-native solution designed to help businesses unlock cash trapped in outstanding payments and reduce the cost of funds.

Trade Receivables Securitization product sheet

Next-generation supply chain finance technology designed to provide competitive, flexible financing and free up capital for strategic business growth.

FAQ

What is receivables finance, and how does it support cash flow?

Receivables finance is a way for companies to access cash tied up in outstanding invoices by selling them to a third party at a discount. This improves cash flow, reduces days sales outstanding and helps fund operations without taking on new debt.

How can working capital programs help reduce financing costs?

Working capital programs provide early payment options that are often more cost-effective than traditional borrowing. By accelerating cash inflow from customers, businesses can reduce their need for expensive short-term credit facilities.