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March 2015

ADF launches Trade Payables Financing in EMEA

Alternative Distribution Financing Ltd. (ADF) is pleased to announce the activation of new accounts payable-based financing for leading distributors towards global corporates.

ADF’s Trade Payables Financing (TPF) programs allow distributors to extend payment terms towards key suppliers without requiring the legal involvement of the supplier or changes to the existing supplier’s terms & conditions. TPF facilities have a simple structure based on the distributor’s confirmed payables towards its supplier, thus allowing a fast implementation and more importantly, making it easily scalable to accommodate additional suppliers. TPF programs are fronted by ADF and managed by Global Supply Chain Finance Ltd. (GSCF) via its state-of-the-art technology platform, ensuring streamlined and fully automated processes.

Kendall Stevens, CEO of GSCF Group commented: “ADF’s Trade Payables Financing, represents a terrific value proposition to companies that operate with certain supplier-concentration and are looking to enhance working capital. ADF provides competitive financing terms, which together with GSCF’s processing expertise, makes our payables offering a very attractive and comprehensive solution. We are experiencing a lot of demand for Trade Payables Financing programs from the market, having recently activated various facilities in the Middle East and South Africa, for distributors across industries. We are convinced that this specific product will become a multi-billion dollar business in the mid term.

Main benefits for Distributors
  • Enhanced liquidity due to extended payment terms on purchases
  • Advantageous accounting treatment (Accounts Payable or Trade Financing instead of Debt Financing) *
  • Increased Days Payable Outstanding (DPOs)
  • Additional borrowing capacity obtained
  • No legal engagement from the Supplier required
  • Increased efficiency and reduced operational risk
  • Tailored facility with quick implementation
  • Access to long-term competitive source of financing through one contractual partner (ADF)
  • Program processes and administration managed by the leading servicer GSCF

* Subject to jurisdiction, applicable accounting rules and auditor’s opinion