Supply Chain Finance

Regions Business Capital

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