INVESTMENT BANKING
C
Sales and Finance Leasing
D
Supply Chain Finance (“SCF”)
This involves providing funds to companies on the Supply chain nance, also known as supplier nance or
back of assets owned. With sales and nance lease reverse factoring, is a set of solutions that optimizes cash ow
arrangement, the assets of the company are bought by allowing businesses to lengthen their payment terms to their
off the company and leased back to the company. suppliers while providing the option for their large and SME
This is an effective way of releasing capital tied up in suppliers to get paid early. Under SCF, suppliers sell their
such assets and also a means of achieving a duo invoices or receivables at a discount to banks or other
objective of raising capital and minimizing costs. The nancial service providers, often called factors. In return, the
deal that can be achieved will depend on the quality suppliers get faster access to the money they are owed,
of the business and the assets up for such lease. enabling them to use it for working capital, while buyers
generally get more time to pay. Instead of relying on the
creditworthiness of the supplier, the bank deals with the buyer.
Invoice Financing/Discounting
E
F
Revolving Credit
This is a way for businesses to borrow money against T h i s i s a l i n e o f c r e d i t w h e r e t h e c u s t o m e r p a y s
the amounts due from customers. Invoice nancing a commitment fee to a nancial institution to borrow money,
helps businesses improve cash ow, pay employees and is then allowed to use the funds when needed. It usually
and suppliers, and reinvest in operations and growth is used for operating purposes and the amount drawn can
earlier than they could if they had to wait until their uctuate each month depending on the customer's current
customers paid their balances in full. cash ow needs. Revolving lines of credit can be taken out
by corporations or individuals.
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