Our financing programs can support facilities based on payables, receivables, and inventory.
Using factoring, purchase order funding, inventory lending, and other structured trade finance techniques, our supply chain finance programs help align the needs of both buyers and sellers and minimize risk across the supply chain.
For firms with solid financials, HCH can arrange vendor finance programs (also known as “reverse factoring” or “payables financing”). Often structured with “off-balance sheet” treatment for our client, these arrangements can be a true “win-win” offering our client’s vendors greater liquidity at a lower interest cost while allowing our client longer payment terms.
In combination with factoring your receivables, HCH can help you import/purchase additional pre-sold product from your vendors. These arrangements are a particularly good fit for very high-growth or seasonal businesses.
For clients dealing in goods that have a large and “liquid” market and holding goods in reputable third party warehouses, HCH can arrange financing against the standing inventory. This inventory financing is typically arranged with conditions on the advance rate and tenor of funding, and must include sound backup liquidation planning.
Our programs allow you to optimize your working capital by providing solutions to you and your upstream and downstream partners. For instance, you can extend your payment terms and avoid discrepancies and fees associated with letters of credit and your suppliers benefit from an on-demand pool of liquidity, lower borrowing costs, faster funding, and a higher advance rate.
HCH can solve short-term cash flow issues by purchasing your company’s invoices in exchange for an advance of up to 85% of the total invoice value. We then collect the full amount from your customer upon invoice maturity. Once the invoice is paid in full, we send you the remaining balance.
In addition to factoring your export account receivables, HCH can also finance your full supply chain. Our supply chain finance programs can support facilities based on payables, receivables, and inventory. Using purchase order funding, inventory lending, letters of credit, and structured guarantees, our financing helps align the needs of both buyers and sellers.