Supply Chain Finance.

Delivering innovative financing options to assist your business with cashflow and streamlining your day to day operations. This involves financing your suppliers by offering them early payment. This is commonly referred to as "supply chain financing" ("SCF") or "reverse factoring".

SCF

SCF is early payment to multiple suppliers of a single buyer. The buyer works with us to offer early payment to their suppliers at a discount. We pay the supplier early and recover the payment from the buyer on the scheduled due date. SCF is in contrast to factoring of receivables which is financing receivables of a single supplier from multiple buyers. This is why we call this reverse factoring.

Using SCF, the buyer receives a portion of our discount fee reducing the cost of the supply and allowing them to make money on their payables. If you would like more information, please feel free to contact OAKRG at your earliest convenience.

What Is It?

An accounts payable processing and funding service offered by OAKRG (“OAKRG”) that allows the customer/buyer (the “Customer”) to manage their entire accounts payable function in the cloud, offers vendors/suppliers (“Vendor(s)”) early payment, and enables the Customer to make money on their “payables.”

How Does It Work?

All Vendors are required to register on the our channel partner // funder’s platform (the “Portal”).

The Vendor can upload their invoice with supporting documentation to the funders Portal or email the invoice and supporting documentation to a designated email address.

The Customer approves the invoice for payment within the Portal, for a date in the future based on standard terms (typically 30 to 90 days).

The Vendor logs into the Portal, clicks on the approved invoice if early payment is requested, and is advised by our team of the discount fee. The funder then advances 80% of the invoice amount, less the discount fee, to the Vendor immediately. In the event that the Vendor does not want to receive funds at once, they do nothing and will receive payment under normal terms.

The Customer pays an amount equal to the invoice to the funder within terms (30 to 90 days), and the Vendor then receives the remaining 20% of the invoice value.

Funder secures their position by obtaining credit insurance on the invoice.

What Does it Do?

The Vendor can receive funds earlier; The Customer can pay the invoice later, possibly pushing their terms out. 

Manages cash flow shortfalls for both the Vendor and the Customer. 

The software platform manages the entire funding process. No need for Customer involvement beyond approving an invoice for payment in the future, with a click of a button. 

The platform is compatible with or plugs into most accounting systems. No IT costs to implement.

 Customer can use their Treasury department to fund invoices and receive interest for their funding.

Customer Advantages

• Eliminates manual invoice data entry and handling, physical storage, and disposal costs.
• Reduces invoice processing costs, especially where there are multiple cost centers and/or locations.
• Speeds up invoice approval and processing time – take advantage of early payment discounts.
• Improves control of accounts payable and decreases errors.
• No need to print off and file supplier invoices.
• Minimizes the risk of fraud and ransomware.
• Early advance of funds to Vendors avoids those calls for early payment concessions.
• Turns accounts payable from a cost center into a profit center as the Customer receives a portion of the early payment fee.

Vendor Advantages

• Eliminates manual invoice data entry and handling, physical storage, and disposal costs.
• Improves control of accounts payable and decreases errors.
• No need to print off and file supplier invoices.
• Minimizes the risk of fraud and ransomware.

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Sectors

Reverse factoring (also called supply chain financing) can benefit industries where suppliers need faster payments, and buyers want to extend their payment terms. Here are some key industries, including, but not limited to, that OAKRG can assist with a range of supply chain financing solutions: