Receivables finance is a supplier-led working capital solution, where the supplier (ANZ customer) sells to ANZ the trade receivable due from its buyer (approved by ANZ), on a limited recourse basis to the supplier. ANZ has the right to receive payment from the buyer, and in the event of non-payment, the ability to enforce this right against the buyer.
Potential benefits of receivables finance
- Access to cheaper funding as early payment to the supplier is offered at a financing cost reflective of the buyer’s credit worthiness and hence is typically lower than the supplier's own financing cost
- Reduce Days Sales Outstanding as discount allows for acceleration of cash and provides an alternative source of funding away from core debt