Buyers Case Study

A Buyer sources goods overseas under Ex-Works and 30 day terms from 10 Suppliers. Shipping to the Buyer's warehouse takes 4 weeks. The goods are pulled after being in the warehouse for 1 week.

Here's how LogisticsFinance helps:

• Purchase goods from the 10 Suppliers under the negotiated terms
• Manage the processes with the Supplier (POs, Invoices, etc.)
• Pay the Suppliers
• Sell the goods to the Buyer when goods are pulled from warehouse
• Invoice the Buyer and collect based on 60 day terms
• Logistics Finance receives a fee for service

Benefits

• Improved liquidity position by 100% - Cash outlay is delayed by 9 weeks
• Efficiency gains and cost reduction in operational purchase and payment processes
• Incremental credit capacity
• Potential to reduce cost of goods via early payment discounts