Benefits to Suppliers and Buyers
Reduces cash conversion cycle and improves overall financial position of buyer who can negotiate extended payment terms
Optimizes cash flow of supplier who gets paid early
Supports top-line and bottom-line growth as buyer can purchase higher volumes at better pricing
Off-balance sheet financing optimizes capital structure of supplier which allows investments into growth and innovation
Complete transfer of credit risk from supplier to Evolution
Strengthens relationships with suppliers and creates resilience in the supply chain
Supplier
Goods
Buyer
Invoices
Supply Chain Financing Contract / Irrevocable Payment Guarantee
Buyer
Approves Invoices
Buyer
Discount Payment
Supplier
Buyer
$ Payment
A buyer agrees to purchase goods from a supplier. The supplier sends invoices to the buyer with credit terms of up to 360 days.
1
The buyer contracts with Evolution to pay its supplier early, at a discount.
2
The buyer approves the seller’s invoices and confirms it will pay Evolution when the financing term concludes.
3
Evolution pays the supplier, minus a discount for early payment.
4
Buyer pays Evolution full amount due at agreed upon financing term (up to 360 days).
5