Leading Sri Lankan integrated financial services company HNB FINANCE, recently launched a new Supply Chain Financing scheme, carefully designed to immediately meet the critical financial needs of businesses imposed by the stringent market demands of a pandemic-stricken economy.
The powerful scheme leads the market in the exceptional amount of value it is able to deliver to businesses, as it is a revolving facility designed to optimize and sustain an uninterrupted supply chain process and cash flow for both buyers and suppliers.
The financing scheme enables manufacturers to purchase from suppliers at a higher discount as payment for material is immediately settled by HNB FINANCE. The company will step in to absorb the credit period and pay the supplier immediately. This enables suppliers to maintain and enhance their liquidity, while customers are thereafter given a generous credit period of up to 120 days with minimal interest to pay off their costs to HNB FINANCE.
This affords them the rare opportunity to manufacture, sell and obtain the cash they can use to repay the loan. Further information on this unique scheme can be accessed by calling HNB FINANCE on 0112 02 48 48
“As an organization, that has always strived hard to innovate to meet the demands of the rapidly evolving market. This new facility is therefore aimed at easing the working capital requirement of businesses feeling the dire implications of a pandemic-stricken market. The beginning of the pandemic forced suppliers to limit their offerings to organizations who are able to pay cash at the time of purchasing raw materials, leaving many businesses who depend on these suppliers to limit their operations. Therefore, we are confident our product offers a practical approach to neutralize these challenges as it was carefully curated to can create a win-win situation for both companies and suppliers to improve their cash flow in a sustainable, convenient and smart manner. It creates a more anchored supply chain for the buyer and strengthens supplier-buyer relationships,” remarked HNB FINANCE Chief Executive Officer & Managing Director, Chaminda Prabhath.
Once an invoice is raised, suppliers are able to receive payment within 24 hours and are no longer subjected to lengthy payment terms that are usually imposed upon credit customers. This enables customers to recover the interest rate paid to HNB FINANCE, indirectly in the form of a discount.
Since it’s a revolving facility, customers can also enjoy a longer credit period and reuse the same funds to purchase new raw material after the outstanding has been paid off.
Further, customers are able to demand for higher discounts from suppliers as they are able to pay in cash at the time of purchase, which brings a direct positive impact to the bottom line, strengthens business relationships and encourages consistent, quicker material delivery from suppliers.
HNB FINANCE PLC was established in the year 2000 and is licensed as a registered Finance Company by the Monetary Board of the Central Bank of Sri Lanka. The company holds a National Long-term Rating at ‘A(lka)’; as affirmed by Fitch Ratings. Maintaining an extensive island-wide presence across 60 branches and 10 service Centers, HNB FINANCE offers a range of exceptional financial services which include Small and Medium Enterprise (SME) Loans as well as leasing, gold loans, housing loans, personal loans, savings and fixed deposits facilities.