Vendor Finance

SCF – Vendor Finance (Transaction Flow)

  1. Corporate issue purchase order
  2. Mizuho Capsave Finance Pvt Ltd (Formerly known as Capsave Finance Private Ltd.) Customer Delivers Goods
  3. Mizuho Capsave Finance Pvt Ltd (Formerly known as Capsave Finance Private Ltd.) Customer Invoices Buyer
  4. Corporate approves invoice for payment and send confirmation to bank
  5. Mizuho Capsave Finance Pvt Ltd (Formerly known as Capsave Finance Private Ltd.) Customer offered early payment required
  6. Mizuho Capsave Finance Pvt Ltd (Formerly known as Capsave Finance Private Ltd.) Customer accepts early payment
  7. Mizuho Capsave Finance Pvt Ltd (Formerly known as Capsave Finance Private Ltd.) Finance funds early payment to supplier
  8. Corporate makes payment on original due date or extends payment terms

Vendor Finance Program Benefits

  • Trade Payable to Supplier. Not Bank Debt.
  • No Credit Documentation
  • No Financing Cost
  • Facilitates dialogue with Suppliers for negotiation of commercial terms
  • Supports strategic supplier relation
  • Scalability – Supports growth in suppliers and transactions over a long term period.
  • Improves Cash Flow / Liquidity
  • Monetize receivables
  • Reduces dependence on Local Bank
  • No collateral required
  • Competitive Pricing – Leveraging on Corporate ’s credit rating
  • Simple Standard documentation
  • Encourages vendors to take up new business opportunity without waiting for advances
  • Facilitate additional working capital funds