NEWS

Generating cash on your terms

Published on: 7th March 2014

Ebury Partners Trade Finance offers a different approach to supplier finance, specifically aimed at alleviating some of the main challenges which toy companies face.cash-money300

Ebury Partners is a currency specialist regulated by the Financial Conduct Authority, which has over 20 years’ experience in the market. In conjunction with its existing currency-based products, the company is now looking to help finance international trade and optimise the supply chain and working capital cycle through a new facility which it launched in January.

Alex Hambrook explained: “We have put together a specific programme targeting some of the challenges faced by toy companies. Our approach is to come into the supply chain at a much earlier stage, benefiting both the supplier and the factory.

“We’re a trade finance specialist, not a bank. We’ve raised our own money to lend on an unsecured borrowing basis, so there is no conflict with a supplier’s existing bank or finance relationships. We’re looking to lend to SMEs with a minimum turnover of £1m a year, which have established relationships with their vendors. We can provide our clients with a 120-day trade credit limit up to £500k, allowing time for the goods that they have purchased abroad to be imported and paid for by their customer before they need to repay us. This will deliver significant cash flow and working capital benefits. The factory will receive payment directly from Ebury Partners with no further cost or liability to them. This may allow suppliers to negotiate preferential prices and terms from the factory, as it effectively makes the supplier a cash buyer.”

There are major advantages for the manufacturer, too. The facility will work wherever in the world the factory is based. When a transaction is confirmed and the products supplied, the manufacturer will receive immediate payment for its goods or services, bringing greater trust and efficiency to the partnership. Payments are fast and transparent, removing exchange rate fluctuation risk and enabling manufacturers to be paid in their preferred currency.

The Supplier Finance solution is a simple five-step process:

  • Step 1 – The supplier and manufacturer register with Ebury partners.
  • Step 2 – The supplier and manufacturer agree transaction details.
  • Step 3 – The supplier receives and approves the goods.
  • Step 4 – Ebury Partners pays 100% of the invoice value to the manufacturer.
  • Step 5 – The supplier settles the invoice with Ebury Partners up to 120 days later.

Suppliers can visit eburypartners.com/toys and download a free guide specifically for toy companies, or they can email tradefinance@eburypartners.com or telephone 020 3627 6010.

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