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Distribution Financing

Financing program sponsored by a company (Vendor) for a selected portfolio of customers with a dual objective:

  • Transfer ownership of receivables. The Vendor sells the receivables to ADF and takes them off-balance sheet. ADF could anticipate the funds to the Vendor from the original due date of the receivables.
  • Extend payment terms offered to customers, boosting sales. The selected customers pay to ADF at an extended due date.

Ideally suited for companies with high volume and recurrent sales to customers or distributors, looking to grow sales whilst maximizing liquidity

Benefits for Vendor
  • Increase sales
  • Enhance competitiveness
  • Boost relationship with customers (loyalty)
  • Improve liquidity
  • Reduce Days Sales Outstanding (DSO)
  • Reduce credit risk
Benefits for Customers
  • No impact in debt (facility is considered Trade Payable)
  • Improve working capital
  • Extend Days of Payables Outstanding (DPO)
  • No need to pledge assets
  • No operational burden