Supply Chain Finance

Our supply chain finance solutions enable you to provide your key suppliers with an opportunity to sell their confirmed Accounts Receivable from you to Regions, at a discount.

Supply-chain finance programs are best suited for companies with:

  • Investment-grade or near investment-grade credit profile
  • $100 million in annual trade spend

Our confirmed supply chain finance facilities start at $15 million.

Here is how it works:

  • An imbedded assumption in a Regions supply-chain finance program is that the supplier has a higher cost of borrowing than your company.
  • You receive extended payment terms from key suppliers, and the suppliers receive cash immediately for selling the Accounts Receivable.
  • The supplier benefits from a lower cost of capital by selling Accounts Receivable at a discount rate that is based on your credit profile instead of borrowing funds from their own bank.

Benefits of supply chain finance

  • You reduce working-capital inefficiencies in the supply chain by allowing suppliers to receive earlier payments while extending your payment terms.
  • It supports your effort to extend payment terms with suppliers, increase days-payable outstanding and lower working capital requirements.
  • Suppliers get access to early-payment liquidity to accelerate the sales-to-cash cycle and decrease days sales outstanding, irrespective of commercial terms with their customer.
  • In many cases, the discount rate carries a lower APR than a supplier’s alternative source of funds.
  • The supplier can better manage credit risk and adhere to concentration limits from a specific customer by selling receivables to Regions on a nonrecourse basis.

Contact Regions Business Capital to explore a supply chain finance solution for your company.

Dan Wells
Managing Director