Additional Areas > Early financing to vendors
- Financing vendors is a way of paying monies owed by the customer ahead of schedule to vendors. Prepayment for authorized invoices are transferred to a third party (the financing body), which takes the place of the vendor for collecting payment according to the originally planned schedule.
- Our system is based on the vendor module. The use of this module places us in the workspace between customers and their vendors (pricelists, orders, entries into warehouses, vendor invoices, and notices of payments) and this allows us to be in a situation to offer early financing to all of the vendors for all of the invoices for a specific customer.
- The body financing the activity will be in a situation that the loaning money to the vendor is based on the financial strength of the customer and will rely on the customer’s obligation to pay the debt.
- The customer’s strength is important to the financing body to assure that payment is made at the end of the process, with added interest, by the vendor.
